Texas Mortgage Assignment Program
This program is best suited for home owners that do not have any equity in their homes, or can no longer afford their homes, and/or cannot afford to wait for the home to sell via traditional methods. (This program is especially beneficial for home owners that owe more than their home is currently worth). Many home owners who purchased a home in the last 5 years fall into this situation.
The traditional method of selling a home with no equity is to try a Short Sale of the property and hope that a willing buyer will purchase the home at a significant discount and also hope that the lender will approve the sale of the property at the discounted price. Even if the property sells the original owner ends up with a negative impact to their credit, no home, no money, and possibly a deficiency judgment from their lender for the difference in the amount owed versus sold. In our experiences the success ratio for a short sale is less than 35% of homes are sold in this manner; the other 65% ending in foreclosure.
Many home owners also opt to walk away from the home or turn the property back in to the bank. This usually gives similar results as a short sale with a guaranteed worse effect on credit, especially in the case of a foreclosure.
A third option that many home owners try is to the rent the home; in many cases for less than the monthly payment to their lender and are forced come up with an additional 100-300 dollars per month just to make the payment.
We feel we have a better solution; we offer home owners the ability to sell their homes to an employed buyer that can afford the payments. This buyer will have a down payment, meet our qualification standards of having a monthly income greater than 3x the monthly payment of the home, and have a proof of this income for at least two years. The buyer will take title to home, but will be making payments on the home owners existing loan. This allows the original home owner: a) to keep their credit intact based on the payment history of the new buyer, b) sell on their terms, and c) to sell at no cost to “the home owner” as our fees are usually paid by the buyer’s down payment.
- Benefits of the Texas Mortgage Assignment Program
- Reduced Marketing Time- homes sell in an average of 4-6 weeks.
- Low fixed closing cost averaging under $1,750.00
- Quick Closings (sometimes in a matter of weeks)
- Full Asking Price (In many cases homes sell for more than market value)
- In some cases Sellers can generate monthly income.
- Stops potential Foreclosure and can improve seller’s credit score subject to the buyer’s payment history.
- Usually No commissions or closing cost paid by the home owner
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