The government, namely HUD intends to eliminate seller financing as an option to sell your property on February 16th unless the seller lives in the home or becomes a licensed mortgage originator.
The government is yet again bent on restricting the rights of private property owners. In what is undeniably an already crippled real estate market, the powers that be are clearly focused on literally shutting down what has become for many the only viable means of selling their property.
Seller financing has long been the sole option for many to sell our homes in times like these when bank financing is not available or like in the early eighties when bank rates where so high, impractical.
HR 4173 the new Safe Mortgage Licensing Act will eliminate the owner financing option altogether unless the seller lives in the home or becomes a licensed loan originator. You will not be able to sell any type of investment property, considering the fact that many Americans have used the owner financing option to fund their retirements the results could be devastating. For many, seller financing has been a time tested means of achieving financial independence regardless of market conditions.
Some may say, I don't own property so this doesn't affect me, why should I care? Well the truth is, during the eighties and in tough economic times when banks restricted their lending to only the most "credit worthy" of buyers. There were still many investors like my great uncle Norman and my mother that where buying homes with their hard earned cash and then selling those properties to families that otherwise could have never qualified for traditional bank financing.
Seller financing is a integral part of the real estate market and it prevents people like you and me from being held captive by the banks, politicians, financial institutions and mess the wall street big wigs create. I urge anyone that has ever bought a home or sold a home using seller financing or for that matter anyone that ever hopes to buy or sell a property of any kind to stand up and make your voice heard. But the time is short you must do it now.
ACT NOW .Many Americans families will not be able to buy a home or sell their homes if this thing passes.
You can view the proposed HUD Rules at www.regulations.gov. Use the search parameter "HUD" and the keyword "safe". Please review and comment regarding the impact of this broad interpretation of the law.
Here's what you should do . . . ACT NOW! Don't leave it for later, the deadline for comment is on February 16, 2010.
All property owners, realtors, real estate agents, note brokers, investors and buyers need to go on record with HUD on this issue.
PLEASE SUBMIT YOUR COMMENTS TO HUD! We only have a few days left to flood this system with your concerns.
Follow these simple steps:
- Logon to www.regulations.gov You will see two white boxes for searching.
- On the left box labeled "Document Type", pull the menu down and select "proposed rules"
- On the right box labeled "Enter keyword or ID", enter "safe mortgage". Then, press search
- Locate the blue search result "FR-5271-P-01 Safe Mortgage Licensing Act: HUD Responsibilities Under .." To read the rules, click on this title. You will be taken to another page. You will see "views". You can click on PDF file or another symbol which will show you the rule document online.
- On the right of the screen, click on "submit comment".
- Complete the form providing required information and your comments and then submit
Say what you feel. The message should include that you would like the definitions in the proposed rules to be changed so that private individuals can originate and service loans on properties they personally own.
Some ideas from others:
- bank loans are not available on some types of properties
- the tight lending climate has made bank financing "out of reach" for many
- seller financing is an "age old" tradition based on private property rights
- these rules would prohibit even partial seller financing - i.e. a "seller seconds"
- according to HUD's "Residential Finance Survey" in 2001, roughly 40% of all non-farm residential properties in the US are owned free and clear
- an estimated 6 million Americans own a property other than their own primary residence
- an estimated 4.5% of Americans own three or more properties, many purchased solely as investment properties
- 40% of non-owner occupied residences are mobile homes which are more difficult to sell with bank financing
- approximately 5% of homes in US are for sale or for lease. seller financing may be key to liquidating this inventory
Please ACT NOW and make your voice heard, while there is still time.
