What is an Assignment of Mortgage Payment Sale Example?

• Current Appraised Property Value: $200,000

• Existing loan(s) balance: $225,000, Payment: $1850/mo PITI

• Payments on existing loan are assigned to a buyer using a Mortgage Payment Assignment

Buyer buys at sales price: $225,000, payment $1850/mo PITI

In this example, the property is transferred to an investor or buyer subject-to the existing loan(s) that the new owner is then responsible for making the payments on ($1850/mo in this example). The sales price ($225,000 in this example) is the balance of the loan(s), which may even be a premium above the current appraised property value ($200,000 in this example). 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 for millions of people, 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.

Historically properties sold with owner financing, as in this example, sell faster and at a premium price.

Note: The price and loan payment could be higher or lower. This program works for all priced properties. In general, this works best for properties with little, no, or negative equity.