Mortgage Assignment And Subject To Existing Financng Investing Method Called A Crime In Economy!
Mortgage Assignment And Subject To Existing Financng Investing Method Called A Crime In Economy!
Banks are crying foul about Mortgage Assignment/Subject to Financing! The more banks, Realtors, and mortgage brokers that I speak to about "Mortgage Assignment/Subject to Existing Financing" transactions are now referring to them as a Foreclosure Rescue SCAM! The reason they are saying this, is because thes transactions are PREDATORY in nature. The distressed homeowner is being presented a miracle solution that makes huge promises that cannot be kept.Many real estate information marketers are telling their students that the "Mortgage Assignments/ Subject to" method is legal. I have some news for you. That it is not true. These real estate information marketers keep saying the same mantra: "Show me the statute that says Mortgage Assignment/Subject to" investing is illegal.Technically in many states you cannot show them directly a specific statuate. However the fact remains that many attorneys are saying the Mortgage Assignment/Subject to financing investing strategy is VERY problematic. Some attorneys have said (off the record) that if you do one or two of these transactions and nothing goes wrong you could probably stay under the radar and out of trouble. The attorneys however did STRESS that if you do this investing technique it should be only considered only as a very short term strategy for three to four months. That is the only way they see that you wont get caught!The big issue everyone is worried about is: What happens and who is responsible when the "new" buyer stops paying on the mortgage? History has shown us that 80% of sub-prime mortgages have gone bad. What makes the real estate investor beleve the Mortgage Assignment/Subject to Financing deal wont go bad? If you have been in the real estate investing industry long enough.. you know that 70% of Lease Options in comparison also go sour or never cashed out!Who is responsible when a Mortgage Assignment/Subject to Financing deal goes bad?Answer: It is the person who put the transaction together!!! It does not matter one iota if you have a CYA (Cover Your Ass) letter at all! The fact that the seller was offered a PREDATORY solution and probably was in duress at the time, they would probably sign anything.I know you have been told by these guru's that a CYA letter along with some other fluff documentation is all you need. However in a standard real estate transaction there is no such requirement. This then becomes not only a complex transaction but now enters into the realm of a "scheme". Don't believe me yet? Send the bank the CYA letter and ask them to send you a confirmation on the terms of the CYA letter! They will NOT do it!Lets move on to when the transaction breaks down. Let's imagine you end up going to court and you have both " Mr. Unhappy Seller" and "Mr. In Default Buyer" (who paid the real estate investor $5,000 to get into the underwater property) in the same room.You show up in the courtroom and you say to your attorney No problems, I have my CYA letter with me, I have nothing to worry about..Well he is not going to let you present the CYA letter! Knowledgeable real estate attorneys are saying that the actual letter itself SHOWS INTENT to DEFRAUD! Not one attorney I spoke to would want this letter to appear in evidence as it is incriminating.I would like to share with you part of a transcript in a court case about a "Mortgage Assignmetn/Subject To Finacing" Investor was on trial. Here is how it went (sic):The Prosecutor asks on the witness stand:Sir, am I correct in saying that you own the home, but you are not responsible for paying the mortgage?You: Yes Sir, I have a "Cover your Asset" letter signed by the seller, stating that I do not have to pay or do I have any liability or responsibility to make payments on the house.Prosecutor says to jury:Do any of you own your home and don't have to pay your mortgage payment? How about a car or credit card?Everyone on the jury shakes heads their heads NO.Prosecutor looks at the jury and says to all of the jurors: So how could this be? Do you see that this is a complex scheme? This is not a standard document in any real estate transaction!At this point the case is pretty much won for the Prosecution and rests.The Defendant gets convicted for Mail Fraud on multiple counts. Why? Every rent check he RECEIVED was considered MAIL fraud since. The checks had come in the mail (even though the checks were deposited and paid to the bank) The defendant got 16 months in jail.Is it worth the risk to do a mortgage assignment/subject to existing finance transaction? I think not! Can you get good West Allis Mortgage lender online You can only fly if you jump out the nest "Wealth Building 102" Reverse Mortgages Upfront Fees Drop This Is The One Wealth Building Secret You Must Learn 3 Ways To Save Money On Your Next Mortgage Wealth Building: Accelerate Your Prosperity Fields To Utilize Commercial Mortgages For Your Own Financial Benefit Mortgage Lead Generation - Finding The Best Leads Online No Points No Fees Refinance - As Attractive As It Sounds End Your Financial Woes With Mortgage Refinance Mortgage Protection And Sickness Insurance, Two Policies That Bring Great Benefits Getting A Mortgage Easily A Plain Guide To Remortgages And Secured Loans