Mortgage Wraps Instead of Short Sales - Good or Bad? - Legal or Not?
Be caredul of these types of scams going on right now. If you have any questions or have been approached around the Treasure Valley, Please contact me first.
David W Hughes, Broker @ Home Realtors of Idaho 208-639-4567 From Payette to Boise, we have you covered.
Curious if any other Active Rainers are being approached by "Investors" wanting help identifying distressed homeowners that meet investor criteria for their takeover system? Here's what I'm hearing lately. Investor calls and wants to now if I know of any homes that owners just want to get out of. They prefer 30 years mortgages where owner bought 7 or more years ago, hopefully owner put 10-20% down, property has some equity, owner can't sell due to bad market, or owner was renting it out and is tired of landlord/tenant problems, or owner is facing short sale situation. Investors want to approach these owners and offer to take over the property and mortgage. Then they will rent it out for 3-5 years or more as long as property will rent for more than what the mortgage payment is, investor will make the mortgage payments for owner but property remains in owners name during that 3-5 years or more. Investors hope eventually that they will be able to sell, pay off mortgage, and make a profit, and of course they want to make a few hundred over the mortgage payment each month until they are ready to sell. They claim that there is no need for owner to worry about the " Due on Sale" clause which is usually in mortgage docs. And in some cases they claim they will pay the owner $5000.00 to help them move out of the property. Oh, and their sales pitch to real estate agents is that they will let the agents that find them properties list the properties for sale 3-5 years down the road when they're ready to sell.
I see many risks for both investors and owners. I think any owner that is approached with this should consult with an attorney, but we all know desperate owners don't think clearly, and many will go for this no matter what the risks. Has anyone seen this work? Here is the web site of the law firm that is promoting this method. www.assumeanyloan.com
Jeff Pearl / REALTOR
RE/MAX Distinctive is Lic in VA MD DC
703-727-4876
jeffpearlhomes.com
jeffpearlhomes@gmail.com
Equal Housing Opportunity Provider
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