An assignment of mortgage is exactly how it sounds, you are “assigning” your mortgage payments over to a buyer and releasing your ownership. However, this IS NOT a mortgage assumption.
This method of selling is a popular option when the seller has to sell quickly, but does not have enough equity to sell their house on the market.
Some of the advantages of an assignment of mortgage:
- Higher asking price,
- Little to no closing costs,
- Typically no realtor commissions,
- Can improve the seller’s credit,
- Faster home sale,
- Market to a larger pool of buyers.
A disadvantage to an assignment of mortgage is that if the buyer stops making payments, the seller will get the house back by either a foreclosure or a deed-in-lieu, therefore putting the seller back where they started.
Markette Properties buys houses using this method or assists you in the transaction with a buyer.