Mortgage Assignments - How Does a Mortgage Assignment Work?
An assignment of mortgage, or "mortgage assignment" is a legal process, which transfers an existing mortgage from an original lender or borrower to a new lender or borrower. Mortgage assignments are most often used when a mortgage lender assigns an existing mortgage loan to another lender. However, a new national program addresses another type of mortgage assignment, where the owner of the mortgaged property sells the home, and assigns the existing mortgage loan to the new buyer.
Most mortgage loans made during recent years are not "assumable." However, a "mortgage assignment" does not contemplate a formal assumption of the mortgage loan. Instead, the new buyer merely accepts assignment, without formally assuming the loan. By accepting this assignment, the new buyer, or "assignee" is contractually obligated to make monthly payments on the loan, as well as abide by all other terms of the original mortgage documents. And even though virtually all mortgages created in recent years contain a provision allowing the lender the option of calling the loan due in the event the property is sold or transferred by the original borrower (due-on-sale clause), it is extremely unlikely that a lender would ever choose to exercise this option. As long as the new buyer (the "assignee") continues to make payments on the existing mortgage when they become due, the lender still considers the loan to be performing, and is typically not concerned with who the payment comes from.
This Home Mortgage Loan Assignment Program (HMLAP) is a new, creative
form of owner-financing, which uses the mortgage assignment strategy to
provide benefits to buyers and sellers alike. A buyer can purchase a
home without having to qualify for conventional financing, under the
strict new lending guidelines. This is particularly beneficial to those
who may be self-employed, or have recently changed jobs, or have other
minor problems with their credit score, which could prevent them from
qualifying for a conventional, FHA, VA, or other government-insured
loan. Under the country's current strict lending guidelines, even a
single recent late payment, or a recent divorce or job change could
affect a buyer's ability to obtain traditional financing.
The new mortgage assignment program also benefits the homeowner or seller by providing the means to sell an otherwise difficult-to-sell home. Homes may be considered "difficult-to-sell" due to a number of reasons including; a sluggish local real estate market; buyers' inability to obtain financing; property location or condition, etc. One benefit to buyers and sellers alike is the fact that the sale of a home by mortgage assignment is not a complicated process. Sellers who choose to offer their homes "For Sale by Owner (FSBO)" can use the HMLAP program to save thousands of dollars in real estate commissions and closing costs.
All mortgage assignment programs are not created equal. There are numerous companies and individuals offering some type of mortgage assignment services. The new Home Mortgage Loan Assignment Program (HMLAP) is a national program, offered exclusively by USA Home Buyer, a real estate investment firm in Southern California. The HMLAP is available to homeowners in all 50 states, and works with virtually any type of mortgage loan. The program is not limited to homes with only one mortgage loan, and can therefore be applied to home sales where there are multiple mortgages in place.
The HMLAP can provide almost any homeowner with a quick sale of their home (usually 30 to 60 days). USA Home Buyer also provides a national database of pre-qualified HMLAP buyers, and provides assistance to both the seller and buyer in the implementation of the HMLAP program, as well as acting as the central liaison between the buyer, seller, title company or closing attorney, and all other parties involved in the purchase and sale transaction. The company charges no real estate commissions, fees or closing costs to homeowners utilizing the HMLAP program to sell their home.
For more information about the Home Mortgage Loan Assignment Program (HMLAP), contact USA Home Buyer at:
Home Mortgage Loan Assignment Program (HMLAP) information and
services are also available through the company's official HMLAP
John Tebbetts founded USA Home Buyer's parent company in 2001 with creative real estate strategies and innovations that have transformed how people buy and sell real estate. A respected and inspiring leader in the real estate industry, Tebbetts was instrumental in developing some of the industry's most pioneering strategies. For more information, visit http://www.USAHomeBuyer.net