Seller financing illegal - HUD Posted by: NewB
Posted on : 2/12/2010 6:00:16 PM Anyone read the proposed Safe Mortgage Licensing Act???
HUD Issues Problematic Rules Interpreting SAFE Mortgage Licensing ACT
HUD has proposed to eliminate ALL seller financing unless the seller
lives in the home or becomes a licensed mortgage originator.
Submit your comments regarding this nonsensical law.
1. Logon to www.regulations.gov You will see two white boxes for
searching
2. On the left box labeled "Document Type", pull the menu down and select
"proposed rules"
3. On the right box labeled "Enter keyword or ID", enter "safe mortgage".
Then, press search
4. 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.
5. On the right of the screen, click on "submit comment"
6. Complete the form providing required information and your comments and
then submit
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HUD Posted by: seminole investor
Posted on : 2/13/2010 12:36:17 PM I think people have misread this proposed rule I read it and had nothing to do with owner financed deals. In fact, the very statement above " illegal to owner finance unless the seller is living in the home" makes no sense. How could it be a owner finance if the seller is staying in the house? Lol |
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Re:HUD Posted by: stangplane investor
Posted on : 3/5/2010 9:38:41 AM this is just my opinion, but the way i read it is that in order to do the owner financing, the loan must be orginated through a loan broker..... |
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hud Posted by: seminole investor
Posted on : 3/6/2010 1:37:40 AM that may be so, i gotta reread it, but BOTTOM LINE, its unconstitutional. everybody has the right to contract, article 1 section 10 u.s. constitution. |
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