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see this article
what do you think? What’s happening in your market?
The clearest analysis that I’ve seen of this housing mess.
REOs are moving in my area and lots of non-foreclosures are being listed (and occasionally sold per RE agent friends) though I don’t see agent “for sale” signs coming down.
This article signals a great time to offer some form of owner financing to fill the institutional financing void or to learn master leasing
Do not do an assignment of mortgage payments. I have heard of many people who got sued using that technique. If the buyer does not pay, the seller will sue you because you got them in a mess. if the buyers makes the payments but the seller pockets the payments and does pay the underlying loan, the buyer will sue you for getting them in to that mess. I know it’s a popular technique being taught by a guy in texas but BEWARE!!!!!!! It’s not worth it to make a few bucks then get sued later.
It is much better to either lease then sublease ( a master lease)
or
get an option, then sell with a highest bidder sale to a cash buyer or one who gets a new loan.
I fully agree with this and had many questions about AMPS that I did not feel confortable about. I had many question such as…What if buyer doesn’t pay, what if seller doesn’t make payments to unlying loan and what will the bank say? They make AMPs seem so easy and seem to be the best option for people that want out of their mortage payments. They say it’s a win, win, win situation. Seller assigns loan and gets out, buyer buys house with no credit or no new loan, and investor gets a cut for setting it up. What about even if the buyer get’s a deed and if fully responsible for the current loan and the seller gets out entirely by signing everything over to the buyer deed and loan…is it still not a good idea? and why? Thanks for your help.
still not a good idea.
it is a very bad idea!!
the seller’s credit is still on the line because the loan is still in their name.
the seller is STUCK if the buyer does not pay. it will take a lawsuit to try to get their house back
but will probably go to foreclosure long before a court dateit is a bad deal for everyone all the way around.
there is a way to make it work. The investor needs to stay in the middle to protect everyone’s interst! it’s called buying with a wrap and selling with a wrap – I have had several conference calls about this
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