A mortgage assignment 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 home on the market.
Some of the advantages of a mortgage assignment are…
Higher asking price
Little to no closing costs
Typically no realtor commissions
Can improve the sellers credit
Faster home sale
Market to a larger pool of buyers
A disadvantage to a mortgage assignment is: 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 homes using this method or assists you in the transaction with a buyer.