Something Really Cool And Useful

Your post and the website are fairly vague but it sounds like they are confusing the concepts of assignable and assumable mortgages.

They are probably doing it on purpose to confuse newbies so they can sell "systems".

Yes, any mortgage can be "assigned". This means the lender can sell to another lender. So what?

But you seem to be talking about a new borrower "assuming" the payments. This is a totally different deal and most cannot be assumed. Read a standard mortgage and you will see.

I would be HIGHLY suspicious of this.

assume a mortgage, even with the bank's phrases in there saying they 'MAY' call the loan due. I assumed the mortgage for my first deal (bought the property subject to the existing financing), which was technically, by the loan papers, a non assumable loan.

I don't know if this is what Jimmy is talking about or not, it doesn't sound like it.

I think I was pretty clear with what I said. The part that I left out was the deeding the property over. Like I said I am still learning it, however, I am going to meet with the guys who do this and have been doing this, and I will get back to everyone with a better understanding.

Now I am going to tell you that your wrong. This has nothing to do with anyone selling systems or confusing anyone to sell anything.

Let me explain this again. This has to do with putting together transactions on houses with zero to little equity, referred to unsellable houses with those individuals who are not able to get a loan.

It works like this. You deed over your property to someone who has money to put down and wants to buy a home but cannot get a loan, which is about 85 million americans today, referred to as unloanable. In addition to the deed being deeded over, the payment obligation is assigned.

As long as the lender gets the payments on time each month, they don't care who's name is on the check. As long as the payments are received on time, the loan will be recorded as current.

I make my sons mortgage payment probably seven times a year, and not once has the lender ever called myself or my son and said, hey we notice a different name is on the check.

This is a very ingenius way of making money. I bet if Dean Graziosi came out with this, you wouldn't be questioning anything. You'd probably be jumping right on the band wagon and doing it, but because someone else here posts it, your negative. If you don't believe in it, then don't do it.

Sorry to sound touchy, but I feel like your negativity is unwarranted.

You are correct, I am not talking about assuming a mortgage. First, we are not a party to the transaction, we are just the person matching up those who have homes with zero to little equity and cannot sell with those who have miney to out down and a desire to own a home, yet cannot get a loan.

Assuming a mortgage means that the note is rewritten into another individuals name and the original payor is out of it.

All that is occuring is the seller deeds over the home and assigning the monthly payments.

As I have said, I am far from an expert but will be meeting with the individual who has been doing this for years.

Trust me, if this is crap, I will eb the first to come back here and say so.

You are correct, I am not talking about assuming a mortgage. First, we are not a party to the transaction, we are just the person matching up those who have homes with zero to little equity and cannot sell with those who have money to out down and a desire to own a home, yet cannot get a loan.

Assuming a mortgage means that the note is rewritten into another individuals name and the original payor is out of it.

All that is occuring is the seller deeds over the home and assigning the monthly payments.

As I have said, I am far from an expert but will be meeting with the individual who has been doing this for years.

Trust me, if this is crap, I will be the first to come back here and say so.

I visited the website and read each of the downloads and noted the forms being used in the transaction are: Authorization to Release Credit, Purchase Contract Agreement, Contract Addendum (specifying terms of the assignment), Seller's Disclosure, Assignment of Insurance, Seller Acknowledgements. After verifying the docs (Copy of Mortgage Statement(s), copy of survey, copy of original Note, Deed or Trust, and Property Repair Estimate (completed by Realtor or Investor). This sounds like a Sandwich Lease with a twist.

Rico

I must have the word assumable mixed up because I literally took my DG counted first deal subject to the existing financing with 0 down, mortgage remains in original sellers name and I put the title in trust. Did that to keep the seller at 10% which is a way to assure the loan can't get called (not that it ever really would), but I also did it so the seller would get something out of it when I do sell it. (It has about 15-20K equity) So, I saved them from foreclosure, I'm paying the loan that's still in their name, and managing the tenant. Because I saved them from foreclosure, they will cover all costs above the amounts of rent received. It works out as a win/win situation. I called it taking the property subject to and assuming the seller's mortgage.

But it sounds like with this program the same thing is being done, except the end buyer is giving money towards the house, and that the investor never owns the property ever. I will have to watch the videos. Does the investor keep this downpayment as their profit, essentially?

BTW Jimmy, thank you SO much for the contact, they are getting me much more than the other HML was going to! And the guy can hook me up with a guy that can do a 30 year loan even with my debt to income ratios the way they are because they'll take 90% of my rents! Awesome connection!

Tammy & Jimmy, I will look into this Thanks for the clarification.
Veronica

Sounds like buying "subject to" with a new name.....package it nice and market it twice. Low probability of a lender accelerating the loan in this environment....better to have someone, anyone paying on the loan. Also, I'm sure the lender would rather have someone paying on the existing loan rather than writing another loan at today's lower interest rates.

"In addition to the deed being deeded over, the payment obligation is assigned."
.......In a "subject to" deal, the payment obligation is not assigned, it remains in the former owner's name. The buyer assumes no responsibility for paying off the loan. It works well for properties with little to no equity because realtors won't touch these because there is no equity for them to be paid their commission from. The typical seller just wants out and is not concerned about their credit, because it usually is already shot. Their main motivation to sell is payment relief. So you take someone with crappy credit but with a good job and some cash, maybe they have defaulted strategically and cannot get financed, and assign it to them. Another strategy is to do a wrap and mark up the payment and pocket the spread.

I needed to lose the payment and I found a company online that put buyers and sellers together... It can be a win win for everyone. It can be done with boats and houses too! Seller has no equity and you can't sell it... buyer can't qualify for a loan but has a nice down payment and can afford the monthly pymt. I think this is really buying "subject too" with a different name.
Barbara

In the videos he actually DOES say it is a combination of "subject 2" plus assignments.

I like this idea. He also says for the investor NOT to prequalify the buyer by running credit because that can put you in a position of liability. It is quick, you are in and out and on to the next one.

Thanks Jimmy for sharing. Keep us posted. I think you said you are going to be talking to the guy personally. I did see he is also from TX.

Karen

to watch the videos, been so busy! This sounds like a great way to get my first deal turned around and sold, I will definitely need to watch it! I don't want to give it to someone who doesn't have the ability to pay though, that would just go towards ruining an investor's reputation quickly!

Thanks for sharing the link!

Hey everyone

This sounds like an old fashion wrap around mortgage we were doing 30 years ago, the original seller is still on the hook for it if everything falls apart.

Jim Kendrick

Then you just sell it to another buyer and collect another fee.

Karen

I didn't even need to go to Austin TX to meet anyone, I got all my answers in a email. The last email said, MAPS closes at midnight, so if you didn't pay $997.00 for the program when they wanted you to, your out and they are even taking down the website at midnight tonight.

Really nice concept, just a bunch of jerks making it available.

I checked out that program 'MAPS' and listened to all the videos...I could just tell it was leading to a scam...It does seem like a great concept, if it is I'm sure Dean will figure it out and we will have it available on this site.
Anyway, I liked something Dean did in TALD and I am just curious if it would work right now with all these foreclosures happening. And if anyone is doing this... He said he knew of a property that was going into foreclosure and he wanted to get it before it was offered to the public. He contacted the bank who was foreclosing and asked if he could buy it from them. The bank said no they couldn't do that but they could sell him the lien. So he basically purchased the note from the bank...original amount owed 195k he ended up buying it from the bank for 12,500. Then instead of Dean foreclosing he contacted the owner and explained all the cost involved with the foreclosure and they decided to just deed the property over to Dean and then he was free to sell it! I guess I am just wondering if this approach makes so much sense why are we struggling to do short sales wouldn't it be quicker and easier to do this?
Barbara

1. owner sends letter to lender and puts investor as trustee (investor has all bank correspondence sent to investor and starts making the payments).
2. owner sends letter to insurance co. to add investor as trustee on policy (and loss payeee and additional insured)
3. you get a quit claim from the owner
4. owner puts property in a land trust with investor as trustee
5. owner assigns the beneficial interest in the trust to investor
6. investor finds buyer to put deposit and pay monthly payments on property

Initial owner is still liable until the property is refinanced. Investor gets to keep the buyer's deposit and anything over the monthly payment

thanks everyone for their input, it's most helpful
Regards
Tom