Hi everyone,is any investor out in the marketplace successfully doing Mortgage assignment deals?? Is this still a valid strategy given the amount of underwater properties out there? I first heard about this technique from investor Phill Grove Thx Bill
The issue is the assignment does not put you on title (no mortgage insurance or even liability insurance) and if discovered by the lender may invoke a Due On Sale, as under the table, you've created an assumable mortgage, usually denied today.
Not my cup of tea...
Mortgage assignments are really just an assignment of a sub2 deal. I'm finding in really hot markets that sub2 deals aren't too prevalent in my local market anymore, so this is a strategy I will pick up again when the market goes back to an extreme buyers market again.
I think there's some confusion here. A mortgage assignment means legally putting your name on the current mortgage instead of seeking new financing. It is NOT sub2 - that's buying a house without telling the bank and without switching the name on the mortgage. A mortgage assignment won't trigger due on sale because it is totally above board with the bank.
Good luck finding any assignable mortgage these days. The banks realized they were losing out back in the 80's when rates spiked so they stopped writing assignment clauses in mortgages.
Open mouth, insert foot. Yes, my brain glitched and put the word "assumption" in place of "assignment". It still strikes me as a bit of a misnomer, but I haven't read his teachings.
Carry on! :)
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