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Is this not working when you use the snippet on a page? Have you tried putting the snippet on the page w/o the form and putting the custom html down on the page directly?
I haven't heard of people using snippets for form insertion before, so I wonder if that has something to do with it.
I am using the snippet to go directly to my target web app and bypass marketo altogether.. I am calling back into Marketo with some of the form data from my web app.
When I try to modify the form action to add the onsubmit part (using the snippet HTML editor), the editor ignores is altogether.
Works directly as custom html on the page
I would recommend that instead of bypassing the Marketo, make it as default and call your web app using the web hook and trigger, now you can map the web app response with some Marketo fields also.