Ever since Phil Grove nationally launched his Assignment of Mortgage Payment System (AMPS), my partners, REI Rockstars, and I have been consistently asked with the big question, “Is assignment of mortgage payments legal?”
Obviously, any time you have a new, zero down, no risk strategy like this that explodes onto the RE scene like AMPS, there is always someone in the peanut gallery who says “You can’t do that.” Can! Assignment of mortgage payments is not legal.”:
But anyway, you guys are asking. So I’m going to give you my perspective as a REI Rockstar member who has been doing these deals for years, and has formed some strong thoughts on the question “Are mortgage payoffs legal?” ?”
First disclaimer, I am not a lawyer, this is just my opinion and you should seek your own advice and use your own judgement.
Is assignment of mortgage payments legal?
Priority! Even though this is a brilliant new idea, it is based on something that has been around for a long time. What is that? Namely, it uses “sub to” contracts to obtain assets under contract which is nothing new.
Second, when considering “Is the mortgage payment legal or not?” It is that the system teaches you to “disclose, disclose, disclose”. Honesty is the best policy in business, in life, and at AMPS. If you do as Phil Grove teaches, everyone in the transaction, including the bank, is notified that it’s happening.
This isn’t some “smoke and mirrors” scheme, anything hidden.
“Are Mortgage Payments Legal?” That is, for many years many investing gurus have recommended many forms of owner finance in one way or another, from sub, lease options, lease purchase, and rent to own type strategies. Each one of these, from what I can tell, will, in one form or another, have the same legal consequences as the AMPS deal.
I’m pretty sure that if someone like Robert Kiyosaki or George Ross were in prison for “fraud” we would all have heard about it.
My thoughts on the question “Are mortgage payments legal?” Obviously I am not a lawyer and encourage you to seek your own council and always follow the law in your state.