Real Estate
A Zero Down, No Credit Deal Structure You Can Use Today
December 27, 2009 by admin · 2 Comments
Real estate investment expert, Joe Crump, teaches zero down investing techniques. Learn foreclosures, short sales, subject to, land contracts, multi-mortgage and other creative real estate financing structures. Free newsletter teaches you how: www.JoeCrump.com Six Month Coaching Program Details: www.ZeroDownInvesting.com ... real estate investing foreclosures houses money investment rental discount property reo short sales
I agree that mortgages are not assumable. They haven’t been for years unless you go through full qualification. But what I’m talking about is taking the deed and taking over payments. There is a “due on sale” clause in all mortgages, but I’ve never seen a bank exercise it over the thousands of deals I and my students have done. In fact, the banks have actually thanked us for keeping their borrowers out of foreclosure. Sometimes you have to look at things a little creatively to make them work.
This does not work because it is subject to the current mortgage. 99.9% of all mortgages are not assumable. If you tried this today, it would activate the acceleration/due on sale clause that is written into almost all mortgages. If you do not notify the outstanding mortgage company of this transaction, you are committing mortgage fraud. This only works with a homeowner that owns the property free and clear.