Mortgage Assignment & Negative Equity

[Tim Silvers]

Is anyone successfully closing mortgage assignment deals in huge negative-equity markets like Las Vegas in which nearly 80% of all homeowners are underwater on their mortgages by as much as 80%?

Given such huge negative equity, I can see how a mortgage assignment would seem alluring to the underwater borrower/seller, but how it would make any sense to even the most desperate & credit-challenged buyer is beyond me.

Who in their right mind would agree to assume a note that is several times the value of the house, let alone make payments that are at the very least twice what the property would rent for?

I suppose you could put language in the purchase agreement that the sale is subject to short sale approval by the bank? But then, that defeats the purpose of doing the assignment in the first place.

[Jon Holdman]

Short sales.