Mortgage assignment. Yes or no??

**big texas** · 11-29-2011, 07:01 PM

hello folks, first time poster. let me explain my situation and im hoping for some advice.

ok so i have been living in this home for 5yrs. i owe less than what the house is worth, so in todays market i still have some equity. the house just hit the market today, for sale.

i have found another house, put a contract and now its in underwriting with the bank. i plan to put 20% down, pay my own closing cost, insurance in full etc.

so out of curiosity this past weekend i email a couple of those "we buy your house in any condition" websites just to get an idea what type of cash offer i would get. needless to say it was about 50% less than my asking price (i figured it would be)

then i got a phone call from a guy talking about mortgage assignment. i have never heard about this. but today i google searched and i have read good and bad things....

asking price for house is 65k. i owe around the 50k on the house. he presented to me the idea.....that his group would come out and assess the house. offer me anywhere from 3 to 5000 dollars cash for me to move out the house. house stays in my name, they assume payments, until the house sells. so in a nutshell...he gives me 3 to 5k to buy time for him or them...to sell the house....or....in another nutshell the equity i have in the house, the renovations i have done, is valued at 3 to 5k. he then told me that after the 3 to 5k , i move, house is vacant, they assume payments. they find a low credit score buyer. they then buy my house at loan amount cost (the 50k) so now the firm owns the house.....then owner finance to the seller...for sale 10k down, 10% for 1 yr lease.....after the 1yr, the buyers credit is improved now the buyer can apply for their own loan to buy out the remainder of the loan amount thru someone like wells fargo, boa, etc.

after listening, the first thing that came to my mind was.....what happens if u guys dont make payments. his explanation was...why would we give u 5000 dollars if we werent going to maintain payments, they would default on their end of the deal, house is still in my name, and i have 5k cash. interesting answer.

then i asked him. well it sounds like u are saying the house is worth 53 to 55k , so why not just offer me 53 to 55k for the house and buy it outright then u can sell it to whoever you want. he didnt have much of a response to this..

my question is...is what he is offering or his system legit or legal????

**jchcomputers** · 11-29-2011, 07:08 PM

What would your house rent for? They could pay you 3k, never make one payment to your bank, rent the property out for 1 - 2 years for $1000 a month and bank all that money before it gets foreclosed on

**big texas** · 11-29-2011, 07:12 PM

i think the house would rent for 850. the cheapest house for rent in the area rents for 850. i thought about renting, that is still an option, just not sure if i want to deal with the headache? i have never played the role of landlord. i could hire a management group. still undecided on what i want to do with the current house. first choice would be sell it out right, 2nd choice would be owner finance it, 3rd choice would be rent it out.

**Greg** · 11-30-2011, 06:01 AM

This is a scam plain and simple. They prey on people who are in trouble and vulnerable. Fortunately, you are not in trouble which gave you the clarity to question the scheme.

These guys will not make the payments and your credit will get trashed when the house is foreclosed.

If they were legit they would buy the house upfront instead of making you sign over the house to them first.

They hand you a check for $5,000, you sign over the house to them, the check bounces, your credit starts its downward spiral.