More Authorities Weigh In On Subject To/Mortgage Assignments Investing Methods


The more people I speak to and the more research I do into this subject, the responses are:

In North Carolina

LOAN ASSUMPTION AND BROKER LIABILITY

Blackwell M. Brogden, Jr. , Deputy Legal Counsel

The Commission has discovered an alarming number of incidents of real estate brokers and salesmen counseling, procuring or assisting sellers and purchasers in arranging a transfer of property in violation of these due on sale clauses. Licensees should be aware that to conceal material facts from the lender or to assist others in such actions will not only subject them to disciplinary action by the Commission but also civil liability.

Simply put, Realtors / Agents who take part in hiding  the transfer of the property from the bank and the insurance company is deceptive!

The latest advice from the “gurus”  is the put the onus on the buyer to inform the bank.  They are instructing this un-loanable buyer to make a MEMO on his next mortgage payment check to try and set a precedent that if the bank accepts the check as payment, that the bank as in fact agreed to  the sale and it is consider verified ….. that is FALSE and Ludicrous!!!

Also know that when people send checks in to the bank to make a payment,  the checks are actually being sent to a clearing house. These are automated MACHINES who process these checks. Their argument is MUTE!

The National Association Of Realtors

The NAR  code of conduct states  in Article 2 :

REALTORS shall avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or the transaction.

Simply put .. Realtors who take part in these transactions  are in indeed hiding the transaction. They are certainly not being forthright by asking the  bank to sign off ! Clearly this is  a violation of Article 2 !!


John T Reed of www.johntreed.com

I love this site!!!   This guy has got to be one of the best real estate investing minds in the country!  He speaks his mind without fear and with passion. (I like that)

I BELIEVE HIS JOHN T REED SHOWS DEFINITIVE PROOF THAT THESE TYPE OF TRANSACTIONS ARE  DANGEROUS TO ANYONE WHO GETS INVOLVED IN DOING THEM!     THE LEGAL REPERCUSSIONS ARE SEVERE AND VERY REAL!

John T. Reed discusses how  State statutes and common law are broken:

Mortgage SCAM =  ” if the borrower promised to inform the lender if the ownership, occupancy, etc. changed, and fails to do so, they have committed breach of contract. Persuading someone to commit breach of contract could be illegal interference on your part”.

Here is another example how this is CRIMINAL ….. “getting the previous owner to keep the insurance on the property in his name to conceal the change in ownership from the lender is arguably conspiracy (two or more persons), mail fraud (something related to the insurance will go through the mail either from you or to you), concealment of a material fact, and false statement (to the insurance company about who is the current owner). If you do two such deals within a ten-year period, you have arguably violated the racketeering law.”

Please read John T Reed’s ENTIRE article on Subject To Mortgage Assignments http://www.johntreed.com/dueonsale.html

Concealment is illegal or immoral

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