How HUD Safe Act Will Hurt Seller Financing
February 12, 2010 by TracyZ · 12 Comments
Be afraid!
HUD is poised to take away our rights to offer owner or seller financing on property we own. Under the Safe Mortgage Act proposal, you can only offer owner financing on the home you live in or you must become a licensed mortgage originator.
Here’s how I see it. If we own a property, ANY property (whether it is our residence or not), we should be able to sell to a buyer with owner financing.
HUD’s proposal is to provide an exemption to “where an individual seller provides financing to a buyer pursuant to the sale of the seller’s own residence” (Item F Page 66551 of the HUD Summary Comments).
Unfortunately, this exemption does not go far enough. What if you bought the property lived in it and then moved? What if it is now a rental property, inherited, or simply bought for investment purposes?
At a minimum the exemption should be extended to include any transaction where the seller provides financing to a buyer pursuant to the sale of property the seller owns (regardless of whether it is the seller’s residence). Read more
Why Save Owner Financing From HR 1728?
June 12, 2009 by TracyZ · 3 Comments
Owner financing has provided a safe harbor for buyers and sellers battered by the tsunami waves of the mortgage and real estate crisis.
Rather than embracing the safety net offered by private parties the government wants to severely restrict the owner financed installment sale.
In May NoteInvestor.com reported the potential disaster that would ensue if the current version of HR 1728 The Mortgage Reform and Predatory Lending Act was enacted (Read: How Congress Wants to Change Seller Financing).
The response and concern has been encouraging with many readers requesting sample letters to use in communication with their State Senator.
We are pleased to share this sample letter Read more
How Congress Wants to Change Seller Financing!
May 29, 2009 by Note Investor · 11 Comments
Rarely does legislation have the potential to impact the world of seller financing as severely as HR 1728: Mortgage Reform and Anti-Predatory Lending Act.
This informative article by Ric Thom helps explain the ramifications of this proposed bill and what action we can take now to protect owner financing and our private property rights. Read more
