NoteGage
Due diligence for mortgage-note buyers

Catch the bad mortgage note before you buy it.

NoteGage scores a mortgage-note listing 0–100 in a single pass, then verifies the seller's stated value against independent public records and flags what disagrees. Paste a listing from Paperstac or FIXnotes.

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Sampleillustrative figures

Sample derivation of a NoteGage Score. Four independent sources are combined — listing data and seller comments, county deed and lien records, comparable sales via an independent AVM, and payment history and note terms. The seller states the property is worth $379,000; the independent AVM values it at $250,222. NoteGage recomputes the equity from $154,492 down to $25,714 and scores the note 30 out of 100 — Avoid — because the equity cushion was overstated. Illustrative figures.

notemarket.example/n/8814
Reconciling · property value1 disagreement
Listing data & seller comments
County deed & lien records
Comparable sales — independent AVM
Payment history & note terms
Seller states$379,000
Independent AVM$250,222
Equity, our calc$25,714
30/100
Avoid
ProblemMedium confidence

A confirmed problem caps the score — the equity cushion was overstated.

fig. 001 — How a score is built: four independent sources are combined, the seller's stated value is set against the independent record, and the derived equity is recomputed before the note is scored. Sample listing; illustrative figures.

The stated value is checked against four independent sources — the county assessor value, an independent AVM, the most recent recorded sale, and recorded deeds and liens. Where they disagree, the disagreement is flagged rather than resolved in the seller's favor.

What it does

It reads the listing, runs the math, and checks the claims.

  • Ingests a mortgage-note listing from Paperstac or FIXnotes and captures the figures it states.
  • Computes the deal math in code — yield to maturity, LTV, ITV, equity position, monthly cashflow, and balloon detection.
  • Scores the deal 0–100 from a deterministic, fully traceable rubric — the same inputs always produce the same score, and every point traces to a factor.
  • Reads attached documents — appraisals, BPOs, and payment histories — and extracts their value points, comparables, and embedded public records.
  • Verifies the seller's stated value and claims against independent public records, and flags disagreements rather than trusting a single source.
How it works

Two stages: score from the listing, then verify with records.

Score from the listing

Paste a listing from Paperstac or FIXnotes. NoteGage captures the figures it states, computes the deal math (yield, LTV, ITV, equity, cashflow, and balloon detection), overlays the property state's foreclosure risk, and scores the deal 0–100 from a deterministic rubric. This first score is based on the listing alone.

Verify against independent records

On request, NoteGage pulls independent public records as a second opinion and cross-checks the seller's stated value and claims against them and against any attached documents. When sources agree the value is corroborated; when they disagree the deal is flagged unconfirmed until it is resolved.

notegage.com / triage
NoteGage ScoreSample
82/100
Pursue

Selected factors — every point traces to one

Protective equity
ITV 58% — a deep equity cushion behind the note
+27/ 30
Value confidence
county assessor, AVM, and recorded sale all corroborate
+9/ 10
Lien position
first lien, ahead of all other claims
+10/ 10
State foreclosure friction
non-judicial state, fast recovery timeline
+13/ 15
Seasoning & performance
48 months seasoned, clean payment history
+23/ 25

Deterministic. Run the same listing again and it scores the exact same 82 — the rubric is code, not a guess, and every point above traces to a named factor with its reasoning beside it.

fig. 002 — And a note that clears: the sources corroborate, the equity is real, and it scores 82 / Pursue. The same rubric that flagged the note above passes this one — it discriminates, it doesn't just say no. Sample; illustrative figures.
What it catches

The discrepancies a buyer would otherwise miss.

Value disagreements

When a seller's stated value or appraisal sits materially above the independent public record, the equity cushion may be overstated. NoteGage checks the value across the county assessor, an AVM, the recorded sale, and any attached appraisal, and flags a contested value instead of trusting the highest number.

County assessorLower
Independent AVMLower
Seller's appraisalHighest
value contested

Chain-of-title & ownership issues

When the owner of record, the party named in the note, and the seller do not agree — or an undisclosed recorded lien sits ahead of the note — enforceability is at risk. NoteGage reads the attached documents and county records and flags the discrepancy with the specific conflicting parties.

Owner of recordMatches
Party on the noteMatches
Selling partyDiffers
parties disagree

Deal-type & payment mismatches

When a note is marketed as performing but the attached payment ledger shows missed payments, or a current note is mislabeled, the deal is priced on the wrong basis. NoteGage classifies the note from its actual payment status and flags where the ledger contradicts the listing.

Listing saysPerforming
LedgerMissed payments
Our readingNon-performing
ledger contradicts listing

Why this exists

Every number in a note listing is the seller's claim until someone checks it. The stated property value sets the LTV, the ITV, and the protective equity — so a value that's off by 20% quietly moves every other figure in the deal.

Checking by hand means pulling county records, comparing an assessor value against an AVM, and tracing recorded assignments. That's hours per listing, which is why most buyers do it only after they've already committed time to a deal — or don't do it at all on the ones they pass on.

NoteGage runs that reconciliation on every listing in one pass, so it happens first instead of last. Every point in the score traces to a named factor, and anything the seller stated that public records don't support gets flagged with both numbers shown.

Questions or a listing you want tested — hello@notegage.com

Early access

Stop underwriting on the seller's word.

NoteGage is opening to note buyers in stages. Add your email and we'll reach out as early-access spots open. Tell us what you buy and we'll tailor what we show you first.

No spam, and we never share your email. We'll reach out when early access opens.

FAQ

Questions note buyers ask.

Evaluating a mortgage note listing means checking four things: the collateral's value against the price you'd pay (loan-to-value and investment-to-value), the borrower's payment history and seasoning, the lien position and chain of title, and the foreclosure timeline in the property's state. A disciplined process captures the fields the listing states, computes the deal math — yield, LTV, ITV, equity, and cashflow — and then verifies the seller's stated figures against independent public records before committing. NoteGage automates this: it ingests a listing, scores the deal 0–100 from a transparent rubric, and flags where the seller's claims disagree with independent data.

Verify a stated property value by comparing it against independent sources instead of trusting a single number: the county assessor's market value, an independent automated valuation (AVM), the most recent recorded sale, and any attached appraisal or BPO. When those sources agree within a reasonable tolerance the value is corroborated; when they disagree materially the value is unconfirmed and the equity you are paying for may not exist. NoteGage runs this cross-source check automatically and flags a contested value rather than trusting the highest number.

A performing note is one where the borrower is making payments on schedule, so the investor's return comes from the ongoing yield. A non-performing note is one where the borrower has stopped paying, so the return comes from resolution — a loan modification, a deed-in-lieu, or foreclosure and resale of the collateral. The two are underwritten completely differently: a performing note is valued on payment history and yield, while a non-performing note is valued on the property's recovery value and the state's foreclosure timeline.

Investment-to-value (ITV) is the price you pay for a note divided by the property's value, expressed as a percentage; it measures the equity cushion protecting your investment. A lower ITV means a larger protective-equity margin — if you pay $60,000 against a $100,000 property, your ITV is 60% and $40,000 of equity sits ahead of your position. Protective equity is the buffer that absorbs a loss if the loan defaults and the property must be sold, so the larger it is, the safer the note.

Confirm the chain of title by tracing the recorded assignments from the original lender to the current seller, and by matching the owner of record in county records to the party selling the note. Gaps, mismatched names, or unrecorded assignments mean the seller may not have the right to sell, or an undisclosed lien may sit ahead of your position. NoteGage reads a listing's attached documents and county records and flags an ownership or chain-of-title discrepancy when the named parties disagree, so it can be resolved before purchase.

NoteGage is a tool for triaging mortgage-note deals: you paste a listing and it captures the figures it states, computes the deal math, scores the deal 0–100 from a deterministic rubric, and on request cross-checks the seller's claims against independent public records and attached documents. It is built for note buyers evaluating performing and non-performing residential mortgage notes and land contracts. It flags value disagreements, chain-of-title issues, and payment-history contradictions rather than producing a single opaque number.

Yes. You paste a Paperstac listing URL and NoteGage captures the fields it contains — unpaid principal balance, rate, payment, term, lien position, asking price, and the seller's stated property value — then computes the deal math and scores it 0–100. It also reads documents attached to the listing, including appraisals, BPOs, and payment histories. On request, it cross-checks the seller's stated value against independent public records and flags any field where the two disagree.

Yes. NoteGage accepts FIXnotes listing URLs the same way it accepts Paperstac listings. It captures the listing's stated figures — unpaid principal balance, rate, payment, remaining term, lien position, asking price, and property value — computes yield, loan-to-value, investment-to-value, and protective equity, and returns a 0–100 score from a published rubric. Documents attached to the listing are read and their figures compared against the listing's own numbers.

The score is a weighted rubric applied to a deal's computed figures — protective equity and ITV, value confidence across independent sources, lien position, state foreclosure friction, and seasoning and payment history. It is deterministic: the same listing produces the same score every time, and every point traces to a named factor shown alongside the total. The score is a triage signal for ranking listings against one another, not a recommendation to buy. Until you run the verification stage, it is calculated from the seller's stated figures.

No. NoteGage is a first-pass filter that tells you which listings deserve a full diligence process and which do not, and which of the seller's numbers disagree with public records. It does not order title insurance, commission an appraisal or BPO, review the collateral file for original wet-ink documents, verify the servicer's ledger against the borrower, or provide legal or investment advice. Its purpose is to reduce the number of deals you spend real diligence money on, and to make sure the ones you pursue start from figures you have independently checked.

Reference · Glossary

Note-investing terms, defined.

Unpaid principal balanceUPB
The principal still owed on the loan, excluding interest, fees, and escrow. It is the base figure most note pricing is quoted against.
Loan-to-valueLTV
The loan balance divided by the property's value, as a percentage. A higher LTV means less equity behind the loan and more risk if it defaults.
Investment-to-valueITV
The price you pay for the note divided by the property's value. Unlike LTV it reflects your basis, so it measures your actual protective-equity cushion.
Broker price opinionBPO
A licensed broker's estimate of a property's value, typically with an as-is value, a repaired value, a quick-sale price, and comparable sales. It is cheaper than a full appraisal and common in note diligence.
Lien position
Where a loan sits in the order of claims against a property. A first lien is paid before a second; a junior lien recovers only after senior liens are satisfied, so position drives recovery risk.
Seasoning
How long a loan has been in place and how consistently it has been paid. A well-seasoned note with a clean payment history is lower risk than a newly originated one.
Chain of title
The recorded history of ownership and assignments for a property and its note. A clean chain confirms the seller has the right to sell; a gap or mismatch is an enforceability risk.
Judicial vs. non-judicial foreclosure
Judicial foreclosure runs through the courts and is slower and costlier; non-judicial foreclosure follows a statutory process outside court and is generally faster. The state's process sets the timeline and cost of recovering collateral.
Land contract
A seller-financed purchase where the buyer takes possession and pays over time while the seller retains legal title until it is paid off. It is a common note-investing instrument with its own recording and enforcement rules.
Automated valuation modelAVM
A software-generated estimate of a property's value from public records and comparable sales. It is fast but can be unreliable in areas with sparse or volatile sales, so it should be corroborated, not trusted alone.

See the full mortgage-note glossary →