Seller Financing Regulation Proposals On Dodd Frank and TILA

It's back... seller financing and purchase money mortgage notes are under attack again! As regulators attempt to sort out the impact of the Dodd Frank Act, Safe Act, and TILA/Regulation Z  laws on seller financing your help is needed. Our efforts had a positive impact once before and we can make a difference again. Urgent News: Seller financing is under regulatory attack and your comments are needed by 10/16/12. This email just came in from the desk Ric Thom, President of Security Escrow. … [Read more...]

Dodd-Frank Hijacks Owner Financing

Private property owners have been swept into the regulations of the Dodd-Frank Wall Street Reform and Consumer Financial Protection Act which was signed into law in July 2010. Owner financing will be regulated in Title XIV Section 1401(2) (E) Mortgage Loan Origination Standards. The law restricts private property owners who want to sell their own property using owner financing (installment sale). These are some of the consequences. Homeowners die before … [Read more...]

Top 5 Ways to Buy Mortgage Notes

One of the things that make buying and selling notes so appealing is the multitude of ways an investor can purchase a note. Frankly, you are limited only by your imagination. Well, maybe imagination and reaching a desired yield. Here is a quick look at calculating the cash flow business that even those with math phobias will like. The Top 5 Ways to Buy Cash Flow Notes 1. FULL – A full is just that. Buying the entire note. If the seller has 322 payments remaining, the investor … [Read more...]

How to Calculate Interest Only Owner Finance Payments

Calculating the payment needed to cover just the interest on an owner-financed contract or promissory note is simple. Just follow three easy steps and avoid two common pitfalls. Follow 3 Easy Steps Step 1: Obtain the current principal balance and interest rate from the land contract or promissory note Step 2: Times the balance by the interest rate Step 3: Divide by 12 In fact it is so simple you don’t need the best financial calculator, any standard calculator will … [Read more...]

Real Deal #143 – New York Church Note

Welcome to Real Deals!  It’s always easier to learn from real life so here we share information from actual owner financed transactions. Think it’s hard to get a home loan?  Imagine the challenges that come with financing a church!  Here’s how seller financing offered a creative solution to provide meeting space for a New York congregation. … [Read more...]

Real Deal #142 – Balloon Note in Florida

Welcome to Real Deals!  It’s always easier to learn from real life so here we share information from actual owner financed transactions.  It was a nice home in Florida with the seller asking $234,000.  The buyer was eager to purchase the property and had saved almost 10% for a down payment.  There was only one problem. The buyer was unable to obtain a conventional mortgage loan due to some past credit issues, primarily attributed to medical bills.  Seller financing was the solution. … [Read more...]