Assignment of Mortgage

This is all what it is. I've heard bad things about the assignment of mortgage (Amps or Maps for short). But if the lease option buyer defaults, you just do it all over again & ask the seller for more time. The longer balloon time you can get, the better.

in order for a homeowner to do an assignment of mortgage-it's actually assignment of the payments for a mortgage- the homeowner needs to have an 'assumable loan'; otherwise the bank will make the loan payable upon transfer of title. Further, in order to assume a loan, the new person(s) will need to show the bank that they are financially capable of 'assuming' the loan.

If I was the new buyer, I would be very skeptical about assuming a loan without the bank's consent, and/or having all documentation recorded...

wishing you success,

Valerie

The beauty of the Assignment of Mortgage process is I can take a house thats underwater and cant sell and sell it to a buyer that cant get a loan. Also, if the buyer defaults I can sell it again, I have buyers lined up. This company I learned this method from has done hundreds of these deals and never has a loan been called due. Does the bank want another non performing liability? And no the buyer doesnt have to qualify with the bank, anybody can make payments on someones mortgage. I have also talked with a local investor who tells me he has done 30-35 of these deals a year since 1977. He said hes never had the due on sale claus called due, and never had any legal problems which he attributes to full disclosers, everybody knows exactly whats going on and they sign docs stating they know the risks. After reviewing my training material I realized my mom got her house this way with no money down, over 10 years ago and also my sister. The Lease Option method has a high failure rate, a high percentage can never refinance and can never pay the balloon. And with house prices still dropping refinance seems even less likely. Also with Assignment of Mortgage the house is transferred to the buyers name. Whats really sweet if you find a house that is not underwater you can do a wrap, with just a piece of paper you can add say 20K to the mortgage for some extra profit. Its called a note, add 8% interest for a 5 yr term and u have a $400 cash flow that ends up paying you an extra 25K How sweet is that?

of "subject to" deals. I have never had a problem with the DOSC but I am always aware that they have the right. The big question in the room is: If they do call the loan and you have a l/o person in there, who has to forfeit their deposit and move out, are you prepared for the legal ramifications you will have to face?

Hey Bill. The course I bought gave me many documents to save my ass, the buyer and seller sign multiple docs acknowledging the risks and that I will be in no way liabel for any possible probs. How many u done, tell me about them. rando

There was a discussion on here a few months ago about this...I listened to some of his videos...it just didn't sound too legal? Keep us posted.

This course I got is called AMPS, Assignment of Mortgage Payment system. His name is Phill Grove from Austin Texas.This guy is the real deal just like Dean.

I watched his videos ... Someone else on this site was talking about him that's how we found out about his program. I think the consensus was it really wasn't legal what they were doing.
Keep us posted if you do any...and don't be greedy! Look to help others out and YOU will be taken care of...

believe that just having papers signed will save your a** when something goes wrong. We live in a world where nobody accepts responsibility for their actions.

I have the same course, yes it is very legal, and people are doing this in present market conditions. Real Estate Attorney Mark Torok from Torok Law Firm in San Antonio, did a definitive legal analysis based on his real estate experience with over 200 MAPS closings. I am posting ads on craigslist, I had few sellers presentations, so far nothing. I know, this is the right time to do it!! Happy investing Halina

You just paid a bunch of money to learn about taking a mortgage "subject to" A strategy that has been around for years. Ole Phil just calls it something new and exciting and sells it to unknowing newbees!
As in every REI strategy the actual hard part is finding the willing seller and a deal that will actually work!

Let us know how many subject to deals you do in the next 12 months. Personally I prefer lease with option to purchase after the safe act was passed this year.

Michael Mangham
MD Home Acquisitions LLC

The lease option is great for the investor cuz he knows there is a 70% chance of failure and he gets to collect another down payment when the poor homeowner hopefull cant get refinancing. I wouldnt want to do this to my friends. What percentage of lease options tennants are able to refinance and complete the deals that your doing?

I ALWAYS have my broker pre qualify my tenant buyers to assure they can exercise the option in 12 to 24 months. So I will say 100%. My strategy is to only put one person in the house, get a little up front, make a little on rent and then make a fair amount when I sell. I don't want multiple tenants. I don't put "poor homeowner hopefuls" in my properties!! I keep a pipeline of these sandwich/lease option deals and close them! That is how I do it. I close on one on Oct 1st. The guy has a VA, just needed a little credit repair, which we helped him get done and a little more down payment. He will close at the twelve month mark and I will net $46,500 on this one. I am sure Phil would approve. You have to make sure you do this with the ability of your tenant/buyer to close in 12 to 24 months! Be an honest helpful investor and you will go far.
The mortgage assignment oh eh a I er mean "subject to" deals work too. I just prefer lease/options myself. You do what you want and good luck with Phil's stuff. You might read some of Dean's material on lease/options. Greg Murphy and several others do this also!

Michael Mangham
MD Home Acquisitions LLC

This discussion on Assignment of Mortgage is very interesting and helpful. But as a Newbie I am wondering how to separate Strong Opinions from Solid Facts. Is there a Referee who will come in and Split the Difference (between Opinions and Facts)?

My Question makes specific reference to this topic, as well as any Other Topics under discussion.

Derrick.

the strong opinions are from investors who have been doing the strategies they are discussing, so they are also facts. Why would you want the facts separated from the strong opinions?? You want just facts, but no opinions??? If so, you can just google topics or read them in books- there are a plenty out there...

Bill, Michael,
thank you for sharing your knowledge and experiences.

Learning and progressing every day,

Valerie