Mortgage assignments

The bank can if they want to but if they are getting paid they most likely won't. But you have to be careful that the seller doesn't have any hidden liens that can creep up later.

My understanding is the arrangement will violate the "due on sale clause" that almost all mortgages have. Whether or not the bank will call it due depends on the bank but they have the right to. As such, it's a very risky thing. From other postings I've seen, I've heard to stay away from these.

- Tom

It can also happen with L/O because it violates your contract with the bank that you must occupy the property but we do those as well... I am very interested in Mortgage Assignments as well and will be looking into them. Remember Disclosures Disclosures Disclosures...

I dont know who would have told you to stay away from mort assigns. Listen to Jim about hidden or nondisclosed liens b/c they can blow the yacht out of the water. Investing is a little risky cause we are dealing with bankers/lawyers who are shady, but as Rina says "if we swim with sharks lets make sure we wear our chain suit".

I am sure if you read the paperwork in your morgage package there are alot of Do On Sale Clauses witch we are all probabley braking, As long as the Banks are getting their payments there will be no red flag! Now if the buyer starts getting behind then red flags will fly I would learn about these and add them into your offer options. Just like any portion of this business you must know what you are presenting to the sellers and buyers.

Jay C

This is actually a Sub-To so these will go to closing so there will be no hidden leins to accure if there are any leins they will be cought by the title company. The deed will be transferred into the new owners name. You are just collecting an Assignment fee and getting the 2 parties together. Let the owner decide who they won't to buy! Not You!

Jay C

have some problems you must overcome but I currently own 17 of them and they work great.

would this not be called a wrap around mortgage.??? Is it or is it not perform in most states...??? another question if a 0 bal on aproperty; could not the seller give u a grant deed of equity to aquire a loan to purchase said property from seller??? yes a transaction would have to be done between seller and buyer to assure each other there is no fishy biz gonna happen. Can this be done?

TY JIM, grammar lil rusty

PS VA Voc Rehab has my paper work for the top dollar training from Dean and His expert teachers and mentors. I am total beside myself for the coming opportunity
i will become a part of..

Ty would you please separate those three questions so I can figure out what you would like answered.

Ok...simple questions requiring simple yes/no answers.

Q. If you were a new REI would you jump into the Mortgage Assignment Strategy?

Q. Are mortgage assignments more risky than Sandwich Lease Options?

Q. If Pre-foreclosures are so hard to work with them why does Greg Murphy tell everybody to go after them in EDGE 2010?

really anything that is behind on payments. If you are a couple of months behind on your mortgage you are technically in pre-foreclosure. Depending on the phase of pre-foreclosure you can work with them, Greg is talking about people that are 2 - 3 months behind. Foreclosures are tough if not impossible to do L/O unless you buy the property out right

Mortgage Assignment is basically a Sandwich Lease Option but on the front end you are doing Sub2.

With the Sub2 you are getting the deed so it prohibits any other liens from being able to be placed by the initial seller.

The thing is the mortg is still in the seller's name and sometimes they (seller) start to get antsy and want their name removed before you might be ready.

here it is as I see it:

If I was a new REI, I would not jump into Subject-to investing. The reason is that there are processes you must do to properly convey the property to reduce your chances of the bank calling the mortgage due. While it is not rocket science, it is best you master L/O first, in my opinion, as that has less moving parts.

Mortgage assignments are not more risky overall than L/O contracts. However, Subject- tos have the most risk built up front with the bank and L/O have the risk spread across the contract life with both the seller and the T/B.

I don't think Pre-foreclosures are hard to work with; I think they are hard to find where they are only 1 - 3 months behind. Anymore than you start paying a lot of out of pocket and it changes (reduces) your ROI on the transaction.

Hope this helps

I would like to agree with you on this one. Greg Murphey does them all the time, & if he is doing them, I don't see why we can't do them. As long as the bank is getting the money, I don't think they care either way. But, that's just my 2 cents. The presentation was boring to me. I understood the concept n wondered what the price on the program was gonna be. Then a day or so later, I get emails from Chris McGlaughlin(sp?), saying MAPS may be more like a PAPS (Payment Assignment)- he thinks its ****, unless you have an escrow payer setup. I'ld rather stick with what DG knows and all the techniques you can use to get deals. What do you think?

I agree as far as staying with DG.

I watched that webinar series also. I thought it was interesting since I always look for tidbits to pull out that I can put my own spin on. I printed out his free gift booklet and plan to use it as a guide to making my own for L/O customers.

His technique for looking for sellers was something to think about too.

Karen

workshops they taught us about foreclosure investing strategies, including the sandwich lease, and the coach did say that the bank can call the loan payable when there is a change on the name; therefore we were told to put the property in a trust under the owner's name with the investor as the trustee. This is suppose to prevent triggering the deed to be due. You get a document signed by the owner assigning the beneficial interest in the trust to you (the investor). You don't record this document until you refinance or sell the property.

Valerie