I did some research on these product lines. I consider myself a smart man, and even I find this crap confusing and cryptic at best
The ownership claim goes into a very large gray zone. If I own the mortgage, and the lender has a lien on the house, and some third party has the title, who owns the house at this point? The actual delineation of who owns what becomes very murky and confusing in a very short time. This is made worst as in my case, an idiot investor sold off the house before it was ever sold to him in the first place, causing a cascading effect of failures. This then begs the question, how can one sell an item that is legally not theirs to begin with?
The legal gray zone is very weird at best. Per a bank, doing a subject to is treated as severely as calling in a margin. Which then begs the question, isn't that what the buyer is doing? If said investor can't buy the house through traditional financing, would imply they should very clearly not be buying a house in the first place. I've also never heard of a contract where calling the lender who owns the mortgage voids your contract. Also if this was 100% legit, why does the contract even need a clause for the bank due on sale clause?
The contracts are very poorly written and tend to favor only the buyer, at the expense of the seller. Per the one contract I saw, only the buyer could back out of the deal at any time, for any reason with no prior notice, effective immediately, with an option to extend the contract indefinitely without paying you. The contract also had no termination clause for the seller, which comes off as highly illegal. Upon providing legal counsel and suance, the investor looks like they backed off
Beyond this though, these schemes are jewish as hell, it's essentially a fancy way of indebting the goy with a mortgage note whilst reaping the benefits of the house ownership to someone else. If the house goes up in value later in an upturn economy, you essentially lose out on crap tons of cash through equity skimming. And if the house turns south or insurance goes up, the buyer can back out at anytime and tell you to get bent.
I did some research on these product lines. I consider myself a smart man, and even I find this crap confusing and cryptic at best
* The ownership claim goes into a very large gray zone. If I own the mortgage, and the lender has a lien on the house, and some third party has the title, who owns the house at this point? The actual delineation of who owns what becomes very murky and confusing in a very short time. This is made worst as in my case, an idiot investor sold off the house before it was ever sold to him in the first place, causing a cascading effect of failures. This then begs the question, how can one sell an item that is legally not theirs to begin with?
* The legal gray zone is very weird at best. Per a bank, doing a subject to is treated as severely as calling in a margin. Which then begs the question, isn't that what the buyer is doing? If said investor can't buy the house through traditional financing, would imply they should very clearly not be buying a house in the first place. I've also never heard of a contract where calling the lender who owns the mortgage voids your contract. Also if this was 100% legit, why does the contract even need a clause for the bank due on sale clause?
* The contracts are very poorly written and tend to favor only the buyer, at the expense of the seller. Per the one contract I saw, only the buyer could back out of the deal at any time, for any reason with no prior notice, effective immediately, with an option to extend the contract indefinitely without paying you. The contract also had no termination clause for the seller, which comes off as highly illegal. Upon providing legal counsel and suance, the investor looks like they backed off
Beyond this though, these schemes are jewish as hell, it's essentially a fancy way of indebting the goy with a mortgage note whilst reaping the benefits of the house ownership to someone else. If the house goes up in value later in an upturn economy, you essentially lose out on crap tons of cash through equity skimming. And if the house turns south or insurance goes up, the buyer can back out at anytime and tell you to get bent.
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