Charged-Off Debt Portfolios For Sale Secured by U.S. Real Estate

By Robert Hytha · Last reviewed May 13, 2026

Most charge-off portfolios are unsecured. The ones on FIXnotes aren't — non-performing mortgage notes backed by real property, priced at 30–65¢ of UPB, sold by verified sellers. Buy the debt, help the homeowner find a path forward, earn a return on solving the problem.

151 Active listings
$4.6M Total UPB
22 States represented

What is a charged-off debt portfolio?

A charged-off debt portfolio is a bundle of loans a lender has written off as a balance-sheet loss after extended delinquency. The underlying debt is not extinguished — the lender sells the portfolio to a third-party buyer who pursues recovery. Most portfolios on the open market are unsecured consumer debt priced at 3–7¢ per dollar of face value. Real-estate-secured charge-offs— the kind FIXnotes lists — are non-performing mortgage notes backed by physical property, priced at 30–65¢ of UPB with materially higher recovery rates.

Two markets, two outcomes

Charged-off debt portfolios trade in two distinct markets with very different economics, regulatory exposure, and resolution paths. Here's how they compare.

Dimension	Unsecured charge-offs	Real-estate-secured charge-offs (NPLs)
Typical asset types	Credit card, medical, auto deficiency, student, telecom	First-lien NPL, second-lien NPL, contract for deed
Pricing (per $1 of face / UPB)	$0.03 – $0.07	$0.30 – $0.65
Typical recovery rate	5 – 15%	40 – 95% of UPB
Time to resolution	6 – 36 months	6 – 36 months (workout or foreclosure)
Primary exit strategies	Collection, resale, charge-off litigation	Reinstatement, modification, DPO, deed-in-lieu, short sale, foreclosure → REO
Regulatory framework	FDCPA, state debt-collection law, CFPB	RESPA, Reg X, state foreclosure law, CFPB
Underlying asset	None — recovery depends on debtor cooperation	Real property — floors recovery at property value

The positioning that matters

Note investing is the most ethical real-estate strategy.

When you buy a non-performing mortgage note, you're not becoming a landlord and you're not competing against homeowners. You're stepping into the bank's shoes on a loan the original lender has already given up on — bringing capital, expertise, and patience to a borrower who's been stuck in limbo.

Where the value actually comes from

Banks want to sell these loans. After a charge-off, they've already booked the loss and captured the tax benefit. Selling to a third-party note buyer recovers capital and clears non-performing inventory off the balance sheet — they're happy to discount heavily to make it happen.

The buyer acquires the asset at 30–65¢ of UPB. Now they have margin to do what the bank wouldn't: actually work with the borrower. Reinstatement, modification, discounted payoff, deed-in-lieu — outcomes the original lender had no incentive to pursue once the loan was charged off.

Every party walks away better off. The bank recovers capital. The borrower gets a path forward instead of an indefinite collections cycle. The investor earns a return on solving the problem.

How other strategies compare

Wholesaling: Profits from sellers who don't know what their property is worth.
Buy-and-hold rentals: Competes against homeowners and converts ownership into tenancy.
Fix-and-flip: Removes affordable fixer-uppers and prices first-time buyers out.
Unsecured charge-off buying: Recovery depends on debtors paying back debt with no collateral or upside.
NPL note investing: Buyer, bank, and borrower all benefit. The transaction creates the workout the bank had no margin to do.

The economics of recovery

Real-estate-secured charge-offs have a fundamentally different risk profile than unsecured debt. The underlying property floors recovery and creates multiple resolution paths unavailable to unsecured buyers.

30–65¢ Pricing range per $1 of UPB for real-estate-secured NPLs FIXnotes marketplace + MBA National Delinquency Survey

40–95% Typical recovery rate of UPB Industry observation; varies by lien position and resolution path

120–180 days Time from delinquency to bank charge-off FFIEC Uniform Retail Credit Classification guidance

Sample outcomes

Real transactions from the FIXnotes track record. Click any card for the full breakdown — acquisition cost, hold time, resolution path, exit.

What's actually for sale on FIXnotes right now

FIXnotes lists individual real-estate-secured notes — not bulk portfolios. Buyers assemble their own portfolio from the live inventory below. Numbers refresh throughout the day as new notes list and others go under contract.

151 Active notes

561st-lien NPLs

852nd-lien NPLs

10 Junior & other liens

Top states (22 total)

Michigan 37
Alabama 26
Pennsylvania 13
Indiana 12
Ohio 12
Kentucky 8
Texas 8
New Jersey 7

How buying works on FIXnotes

Search: Filter live inventory by state, lien position, UPB, pricing.
Submit offer: Bid as a percentage of UPB or a fixed dollar amount.
Accepted: Counter, accept, or decline rounds in your dashboard.
DD & Close: 21-day due-diligence window; close via standard mortgage note assignment.

Who buys here

Family offices

Capital allocators seeking real-asset-backed yield outside public markets. Typical hold: 12–36 months across a basket of NPLs.

Private credit funds

Specialty funds focused on consumer credit, real-estate distressed, or income-yielding alternative assets. Bid in bulk; service via licensed sub-servicers.

Accredited individual investors

Note investors managing personal or IRA-held portfolios. Workout-oriented — modification, DPO, deed-in-lieu — with smaller asset counts.

Frequently asked questions

Is buying charged-off mortgages ethical?

Yes — and arguably more so than most other real-estate strategies. Note investing isn't landlording and isn't wholesaling. When you buy a non-performing mortgage note, the bank has already charged off the loan, booked the loss, and given up on the borrower. You step in with the margin to actually work with the homeowner: modification, reinstatement, discounted payoff, forbearance — outcomes the original lender had no incentive to pursue.

How are charged-off mortgages priced?

Pricing on real-estate-secured charged-off mortgages typically runs 30–65¢ per $1 of unpaid principal balance, driven by lien position, equity in the property, payment status, geography, and projected workout cost. Unsecured charge-offs trade much lower — usually $0.03–$0.07 per $1 of face value — because there is no asset to recover against.

Where can I find charged-off debt portfolios for sale?

Real-estate-secured charged-off debt portfolios are listed for sale on the FIXnotes marketplace (https://fixnotes.com/search) — non-performing mortgage notes from verified banks, credit unions, hedge funds, and accredited sellers, available as single assets or bulk portfolios priced at 30–65¢ of UPB.

What's the difference between an NPL and a charged-off mortgage?

An NPL (non-performing loan) is any mortgage past 90 days delinquent. A charged-off mortgage is one a lender has additionally written off as an accounting loss — usually after 120–180 days of nonperformance under FFIEC guidance. All charged-off mortgages are NPLs; not all NPLs are charged-off. Both can be sold on the secondary market.

How do I qualify to buy on FIXnotes?

FIXnotes is a marketplace for verified buyers. Qualification involves completing a buyer profile, accreditation verification where applicable, and an NDA before viewing data-tape-level detail. The qualification flow lives at /onboarding once you register.

What is UPB and how does it relate to pricing?

UPB stands for Unpaid Principal Balance — the remaining principal owed on a mortgage at a point in time. Charged-off mortgages are typically priced as a percentage of UPB; a portfolio listed at $0.45 means the buyer pays 45 cents per dollar of UPB across all loans in the portfolio.