Top 5 Mistakes Sellers Make When Trying to Sell Their Non-Performing Loan

Selling a non-performing loan (NPL) can be a smart move — unlocking immediate cash and removing future headaches.

However, many sellers unknowingly make mistakes that delay sales, lower their offers, or lose buyers entirely.

Here are the top five mistakes to avoid when selling your non-performing loan.

 
🚫 1. Hiding Key Information
Some sellers hesitate to disclose important facts like borrower delinquencies, pending bankruptcies, or junior liens.

✅ Reality: Buyers like iBuySeconds.com will find out during due diligence anyway — and early transparency leads to faster, stronger offers.

 
🚫 2. Overpricing a Distressed Loan
It’s natural to want top dollar. But distressed loans have risk — and pricing them like performing assets causes buyers to walk away.

✅ Be realistic about the collateral value, borrower status, and expected timelines.

 
🚫 3. Not Having Loan Documents Ready
Missing promissory notes, mortgages, or title policies creates delays and uncertainty.
Without documents, many buyers simply can’t move forward.

✅ Have basic documentation ready when you submit your loan for a quote — it speeds up offers dramatically.

 
🚫 4. Ignoring the Senior Lien (First Mortgage)
If you're selling a second lien, remember that the condition of the first mortgage matters.
High first liens relative to property value can reduce buyer appetite — or require price adjustments.

✅ Knowing the first lien’s balance helps you set expectations correctly.

 
🚫 5. Waiting Too Long to Make a Decision
Non-performing loans lose value over time if collateral deteriorates, foreclosure costs rise, or borrower bankruptcy filings complicate recovery.

✅ Moving quickly after receiving an offer protects your upside — and shows buyers you're serious.

 
📈 Conclusion
Selling a non-performing loan can be simple — if you avoid common mistakes.

At iBuySeconds.com, we help sellers through the process quickly, professionally, and confidentially —
making sure you get fair value without the stress.

👉 Ready to start? Submit your loan information for a confidential review today!