Since Phill Grove launched its Mortgage Payment Assignment System (AMPS) nationwide, my partners, REI RockStars, and I have been continually asked this big question: “Is Mortgage Payment Assignment legal?”

Obviously, whenever you have a new, zero down payment, no risk strategy like this that explodes on the RE scene like AMPS, there’s always going to be someone in the peanut gallery saying “You can’t do that! Mortgage payment allocation are illegal.”:

But still, you guys are asking, so I’ll give you my perspective as a member of the REI RockStars who have made these deals like clockwork for years, and have formed some strong ideas on the question “Is mortgage payment assignment 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 the assignment of mortgage payments legal? I certainly think so and here’s why.

Precedence! Although this is a brilliant new idea, it is based on something that has been around for a long time. What’s that? That is, it uses a “sub to” contract to obtain a property under contract that is nothing new.

Secondly, when considering whether “Is the Assignment of Mortgage Payments legal or not?” It is that the system teaches you to “disclose, disclose, disclose.” In business, as in life, and at AMPS, honesty is the best policy. If you do this as Phill Grove teaches, all parties to the transaction, including the bank, will be notified that it is taking place.

This is not a “smoke and mirrors” scheme where something is hidden.

In the final point on the question “Is the assignment of mortgage payments legal?” It is this, for many years, many investor gurus have recommended, in one form or another, many forms of owner financing, sub-a, lease option, lease purchase, and rent-to-own strategies. Each of these, as far as I can tell, in one way or another, would have the same legal repercussions as an AMPS agreement.

I’m pretty sure if a guy like Robert Kiyosaki or George Ross were in jail for “fraud” we would all have known about it.

That is my take on the question “Is the assignment of mortgage payments legal?” Obviously, I am not a lawyer and I encourage you to seek your own advice and always follow the law in your state.