What Is A Mortgage Assignment?
A mortgage assignment is assigning the current mortgage exactly as it is (exact payment and exact years left on loan) so it’s a great deal for the buyer, especially since the effective interest rate is lower the more years the loan has been paid down.
However, you can wrap the loan for a full 30 years if you want, you can also create positive or negative cash flow within the monthly payment. There are tons of things you can do but I would also agree that in an assignment, we would like to see the buyers get refinanced if they can within 3 – 5 years… the sooner the better. The due on sale clause is still a risk (unless they did the deal the way we teach).
I also think it’s in the best interest of all parties that the buyer try to get the loan refinanced or be ready to sell if the note gets called 10 years down the road when their substantial equity in the property. Again, this is only if you do these types of deals without notifying the bank.
Do You Need to Have A Realtor License To Do A Mortgage Assignment?
No, you don’t need a real estate license. In fact there are pros and cons to having a license so I recommend all investors find a realtor partner and all realtors find an investor partner! It makes for a real WIN-WIN partnership!
Will A Mortgage Assignment Work In This Situation?
Let’s take this seller scenario: “I would love to be able to sell our home, we are current on payments, but the house we bought at $700,000+ is now worth 150K less than it was when we purchased it. We bought the home using a jumbo loan. We would love to find a buyer but do not want to do a short sale. We don’t NEED to sell it, so we are not desperate sellers. We would like to find someone to take over payments so we can move to another state. Will this mortgage assignment work under these circumstances?”
Yes, in this generic example, the seller would benefit from being able to use a mortgage assignment method to sell thir home.
Plus, even better news is that by using this type of strategy to sell their house, they will more than likely sell it quicker than they could have using traditional methods.
What have you found to be the best type of marketing when it comes to finding sellers who want to do a mortgage assignments? Do you use postcards or door hangers?
Our door hangers get a pretty good response (1% for the most part). We also have a letter that is getting a VERY good response too but we don’t mail these, we drop them at the houses.
We have found that different classes of people respond to different advertising (i.e. $150K and under houses, $200K – $400K houses, $500K and up houses)
We always say SPLIT TEST EVERYTHING!! Find a neighborhood or list and develop two pieces of marketing and then blanket half of the neighborhood or list with one piece and the other half with the other. Track it and find your winner! Keep on tweaking your marketing that way and you’ll be rockin’ in no time, no matter who you are targeting.
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