Deliberately Defaulting On A 2nd Mortgage So That You Can Assume The 1st Mortgage Without Qualifying

Anyone know anything about this?

Who originates the 2nd mortgage?

Comments(4)

  • myfrogger3rd November, 2004

    Tell us more about the situation. You don't need to qualify to take over a mortgage. You can simply start making the payments to the bank and chances are they won't care because they are getting paid.

    I can talk for an hour on concepts and principals but that won't help you much unless you post more details.

  • telebroker3rd November, 2004

    I dont know much about this concept... I vaguely heard about it at a recent RE boot camp sales pitch seminar...

    Apparently its a good way to avoid the possibility of the Due-On-Sale clause

  • LeaseOptionKing3rd November, 2004

    Seller gives you a second and doesn't pay, allowing you to start paying on the first. Seller could give you a Deed in lieu of foreclosure.
    [addsig]

  • alarson7th December, 2004

    Sounds illegal to me. Watch it. Any intentional default smells like fraud.

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