I'm afraid this is legal to do, yet the seller can be victimized just like a scam. In my opion anyone who does this is settings themselves up for disaster.

Here is how this works:

Sold2Us is an investor that buys the deed to the property and sells it to the buyer while keeping the existing mortgage in place. The investor deals with buyers that can not obtain financing through a bank or mortgage broker because of bad credit, etc.

Because the seller's name remains on the (mortgage) they will still remain liable for the payments if they were not made by the buyer.

Seller Beware!

Sounds scammy to me...stuff like this SHOULD be made illegal, IMHO.

PS: Thanks for explaining all of that to our users, TPTB. ☺

Ironically I was contacted yesterday by and interviewed with an investor that made a decent living out of doing this. I was offered the position, but turned it down once he explained in detail how this works - too shady for me. I did further research on this and this is what I've found.

http://www.reimaverick.com/is-the-assignment-of-mortgage-payments-system-safe/

Make sure you click on the links embedded in this article, will explain things the real estate terminology so you get a better understanding on how this works.