What is a non performing note? Clearly, these types of investment have several different names in the real estate industry. They can be addressed as property notes, cash flow notes, bank notes, discounted notes, etc. Whether or not a bank, a minor business, a private individual, or a property is sold and a seller carries back financing; once there is loan created and it is collateralize by real estate there is normally a promissory note concerned. Once the borrower on that loan gets late in bringing in payments or for some reason is not meeting their responsibilities that note is sorted out by the lender as non-performing asset.

A Non Performing Note is a mortgage that has not been paid and is in risk of being foreclosed on by the bank or note holder.