One of the newest hyped real estate marketing schemes is called “Mortgage Assignment / Subject to Financing” I have previously written that this is a deceptive and dangerous strategy to try. I understand that there are those people who are well intentioned to think that this technique is actually going to help under water home owners.. In fact all it does is create another sub prime lending practice. These type of transaction fail over time. The investor is seen as the intermediary who put this deal together and there are severe repercussions that the investor will have to answer for.
Don’t let anyone pass off on you there won’t go to jail . The Feds will get you on one of one the following charges:
1. Mail Fraud
2. Wire Fraud
3. Insurance Fraud
4. Mortgage Fraud.
I would advise anyone NOT to take part in this strategy. Do real estate investing the RIGHT way. There are many ways to make money in this economy without resorting to illegal means.
If you don’t believe me, just send a letter to the bank saying you have sold the house without their approval to a new buyer, and you are not responsible for payment.. See what they say.. Why not try and get a letter from them saying..
Okey dokey.. thank you for letting us know….
NO WAY!! Get real guys… Stop believe they product hype of new launches!