Mortgage Assignments are a Simple and Effective way to Save Your House from Foreclosure.
Mortgage Assignments are back on the rise as an effective way to avoid Foreclosure. If you are facing a foreclosure it may be the only solution that really works fast enough to stop the bank dead in its tracks.
A Mortgage Assignment is not new, it is something that has been utilized for years.
What is a Mortgage Assignment?
A Mortgage Assignment is an old concept, once called the assumable loan. If you’re saying to yourself…” wait, there are no assumable loans anymore”… you would be right. Technically speaking assumable loans went out of existence about 30 years ago with the last housing bubble that burst. Back then, all off the banks wrote into their loans something called the “Due Upon Sale Clause.”
The “Due upon Sales Clause” simply states that if a property changes hands or is sold to a new owner while the mortgage still has an outstanding balance, then the bank has the option to call the loan. This rule, intimidated any would be buyers from just taking over the payments, because it added a new level risk to the old practice because if the bank found out it could call the loan. Most buyers abandoned the practice.
So what happened, what has changed? Absolutely Nothing.
The rules are still the same, but we know that with as many Short Sales and Foreclosures that have already saturated the housing market over the past several years and with new foreclosures and short sales hitting the real estate landscape daily, that banks are not calling loans, especially if they are being paid.
In its most simple terms, a mortgage assignment is when a homeowner assigns their mortgage to a new buyer as a way to sell an unwanted House and walk away to start a new life.
So, doesn’t this pose an ongoing risk for the homeowner still on the mortgage?
There is a minimal risk, but no more than the Foreclosure already in process.
We have all seen that the financial crisis created by the Banks and Mortgage Companies. Even though the foreclosure rate has dropped substantially, the default rate is still the highest it has ever been. So if a homeowner knows that a foreclosure is going to occur, but he/she has got someone else willing to take over the payments, and make up any past payments as well as pay the hefty bank fees and penalties to reinstate a defaulted loan… (that will Stop a Foreclosure and save their credit), then the homeowner perceives the risk to be mitigated. After all, the buyer has “his money in the game” and risks losing his/her initial investment altogether as well.
So in a world where a homeowner is going to lose his/her house to a foreclosure and does not have the time to wait for the real estate market to to deal with it, the Banks to approve a loan modification, doesn’t the homeowner have a better shot at saving their credit and avoiding a 7 to 10 year credit nightmare that a foreclosure presents, if they simply let the new owner take over the payments. Of Course they do.
To date I have yet to meet anyone that has completed a mortgage assignment, whereby the bank has exercised its right to call the loan. With today,s new regulations and financial oversight, no banks want a foreclosure on thier books because they need to carry cash reserves to absorb the value of the loss. Mortgage Assignments create a “win – win” for homeowners in foreclosure and Buyers looking to acquire properties.
If you are a homeowner facing foreclosure, a mortgage assignment maybe your best option to save both the house from foreclosure and your credit. I encourage you to pick up the phone and talk to someone and get as much information as you can so you are equipped to make the best possible decision for you and your family.
We have completed dozens of Mortgage Assignments for our clients and I am confident that I can help you.
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We are Foreclosure Specialist and can help you Stop Foreclosure Now. If you live in Stockton, Sacramento, Lodi, Manteca, Modesto or Tracy and need to Avoid Foreclosure or sell your house fast, Call us … we’d love to help you formulate that plan. There are no Fees to pay. You’ve got nothing to lose 🙂
Peter Westbrook is a Real Estate Investor with Westbrook Real Estate Investments and a frequent publisher of e-books and Articles on the Web. Westbrook Real Estate Investments specializes in Foreclosures, Short Sales and Mortgage Assignments. You can reach Peter through either his email address: firstname.lastname@example.org or by calling 209-481-7780.