What is UPB and Why It Matters When Selling Your Loan

📚 Introduction
If you're considering selling your mortgage note — especially a second lien, junior loan, or HELOC — you'll quickly hear the term "UPB."

UPB stands for Unpaid Principal Balance — and it’s one of the most important numbers buyers like iBuySeconds.com look at when evaluating a loan.

Here’s what it means, and why it matters when selling your note.

 
📈 What is UPB?
UPB is the amount of principal that the borrower still owes on the loan — excluding any unpaid interest, fees, or penalties.

It reflects the "true" amount outstanding from the original loan, and it's the foundation for pricing the loan today.

✅ Example:

Original Loan Amount: $75,000
Borrower has paid down: $20,000
Current UPB: $55,000
 
🏦 Why UPB is Critical to Buyers
When buyers evaluate a mortgage note, UPB is used to:

Assess the remaining claim they are buying
Estimate potential recovery through payoff, settlement, or foreclosure
Calculate the Loan-to-Value ratio (LTV) — comparing UPB to the property's current value
✅ In short, the UPB helps buyers understand risk vs reward — and how much they can reasonably offer for your loan.

 
📋 How to Provide UPB Information When Selling
When submitting your loan for a quote, it’s best to include:

Latest Payoff Statement (if available)
Most Recent Payment History
Any borrower correspondence if relevant
✅ Even if you don't have a payoff statement, a good-faith estimate of the UPB is better than nothing — it speeds up the offer process significantly.

 
📈 Conclusion
When selling your loan, providing clear information about the Unpaid Principal Balance can mean the difference between a fast, strong offer — and a long delay.

At iBuySeconds.com, we review second liens, junior notes, and non-performing loans daily — and fast UPB review helps us issue confidential offers within 48 hours.

👉 Ready to find out what your loan is worth? Submit your loan information today!