Mortgage Payment Assignment
The best way to sell a property FAST in Dallas or Fort Worth TX, where the property either has a little equity or is not more than 20-30% under water, is through a Mortgage Payment Assignment sale.
A Mortgage Payment Assignment sale (also called an Assignment of Mortgage Payment Sale) is the sale of a property in which the deed (ownership of the property) transfers to an investor or buyer in exchange for their legal agreement to take over the payments on the current mortgage(s). It’s important to note that although virtually no loans are assumable, anyone can assign their payments to another borrower along with ownership.
Mortgage Payment Assignment Sale Example
– Current Appraised Property Value: $200,000
– Existing loan(s) payoff: $225,000
– Sales price: $225,000
In this example, the property is transferred to the investor or buyer subject-to the existing loan(s) that the new owner is then responsible for making the payments on the loan(s).
The sales price is the balance of the loan(s),which may even be a premium above the current appraised property value. Typically when a property is sold with financing, as in this example, it will sell faster and at a premium price, because the buyer is getting the financing. This is because loans are currently difficult to get, and because in general, buyers are buying based more on the terms of the loan (monthly payment and money needed at closing) than the price of the property.