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Profile picture for Blue Nile

New mortgage scam to rip off sellers? HMLAP?

Some Home buyer "pro" on the selling board is selling something that sounds like an outright "scam" to me to rip off sellers...  Called HMLAP.  From the description, it is similar to assuming a loan, but the guy claims it can be done for any loan, for any amount, even if negative equity, for any buyer regardless of credit rating.

And he states it only transfers ownership of the property and assigns "loan payments".  No mention of change of liability for the one who signed the note.

I think the thread needs some input from some qualified loan officers.  And if I'm interpreting it wrong, I would like a clarification of how this could possibly work to the seller's benefit, and how the buyer could possibly qualify without qualifying, and why a buyer would want to assume payments on an underwater asset.

Sell a Home WITH its Mortgage!

well, apparently that thread was deleted by Zillow, but the guy posted a second with the same title and content (but without my response)...

Sell Your Home WITH its Mortgage!
  • February 16 2011 - US
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Answers (3)

Profile picture for SoCal Engr
So here's part of their press release...

"Although the seller's name does remain on the loan for a short period of time after closing, sellers can feel safe knowing the payments are being made, since the special HMLAP documents require payments to be made directly to a mortgage servicing company, to be forwarded to the mortgage company. The HMLAP forms also include legal documents which allow the seller to take the property back in the unlikely event there were ever a default in payments. The Home Mortgage Loan Assignment Program also allows the buyer and seller to agree on the length of time until a full payoff of the loan is required (typically 1 to 5 years)."

Personally, my read is that this is geared towards those who have to sell but can't. However, I seriously doubt that they're offering market. They also have a "service" for buyers looking for owner-financed or rent-to-own - so it's an "innovative" RE business.

Scam? Not really. An "aggressive" business? Probably.
  • December 26 2011
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US Home Buyer- Whether your service is legitimate or not, you are not abiding by Zillow's Policy. This forum is for Q & A only. I suggest you contact Zillow's advertising department, if you wish to spread the word of what you have to offer on Zillow's website.

Happy funding, Rudi 
  • December 26 2011
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It is unfortunate that you did not perform more research before posting your comments about the mortgage assignment program above. The HMLAP is a legitimate program, offered by a legitimate national investment firm, USA Home Buyer.  For more information about our company and services, please visit our website by following the link in our profile.

For more information about mortgage assignments and the HMLAP program, please visit the [hotlink removed by Zillow moderator] website.

We realize there are many scams and unscrupulous companies proliferating the Internet, and it is always good advice to beware of suspicious claims made by advertisers.  Nevertheless, irresponsible postings which contain unfounded allegations and hyperbole, can often cause damage to the legitimate folks just trying to run an honest business.  The unfortunate result of your posting is that Google's #1 search result for HMLAP is the title of your post, "New Mortgage Scam to Rip Off Sellers?"  We certainly hope you will consider deleting your post after learning more about this program.

Best regards,
USA Home Buyer
  • December 26 2011
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