Let us say John Doe bought a house a year ago and the mortgage is at 95-100%. All of a sudden John’s company relocates him to another city. He does not have enough time to sell his house. There is not much equity or cash on hand. In order to sell and close, John will have to “bring cash to close”. When John moves to the new city he is planning to buy a house in that city. Therefore, he will end up making two mortgage payments and he knows he cannot afford to do that. So what options does John have? He needs a quick solution.

Let us say John Doe bought a house a year ago and the mortgage is at 95-100%. All of a sudden John’s company relocates him to another city. He does not have enough time to sell his house. There is not much equity or cash on hand. In order to sell and close, John will have to “bring cash to close”. When John moves to the new city he is planning to buy a house in that city. Therefore, he will end up making two mortgage payments and he knows he cannot afford to do that. So what options does John have? He needs a quick solution.

He can put his house for sale by owner (FSBO). He can list the house with a Realtor but he does not have the cash needed to pay the commission and any deficit to bring to the closing table. Or find a quick buyer and sell the house at a loss but still has to make up for the mortgage deficit. He still needs cash to move and then buy a house in the new city. There is no quick solution.

So what is John supposed to do. He needs to continue making payment on the current loan and also make payments on the new house that he would be buying in the new city. This problem can be solved if the owner can do two things: He signs the deed to the house to the buyer (us); and he allows me (us) to make his mortgage payments while he remains on the mortgage note.

How does this help John? Well, John can now move to the new city and does not have to make two mortgages. We continue to make payments, bring a tenant and sell the property at a convenient time in the future and it becomes a win-win situation for everybody.

.