Action Required by March 5th – HUD Proposing to End Seller Financing
The following is extremely important! HUD has proposed to eliminate seller financing unless the seller lives in the home or becomes a licensed mortgage originator. This affects all homeowners and homebuyers (even if you’re not an investor) because it restricts one of the most important tools that a seller and buyer have to create win-win transactions, and can further hurt property values and chances for a recovery.
How YOU can help:
Real estate investors, home buyers and home owners across the country need to go on record with HUD on this issue. Please review the proposed law and submit your comments to HUD. We have until March 5th (extended due to public response) to flood this system with comments.
Follow these simple steps:
- Visit www.regulations.gov. Select document type “Proposed Rules” then as keyword enter “FR–5271–P–01″ or “safe mortgage” and search (or use direct links below)
- Review document as you need
- On the right of the next screen, click on “submit comment”
- Complete the form providing required info, your comments and submit
Or use these direct links:
FR–5271–P–01
SAFE Mortgage Licensing Act:
HUD Responsibilities Under the SAFE Act
(Document ID HUD-2009-0155-0001)
What do you say?
Say what you feel, but say it politely! The message should include that you would like the definitions in the proposed rules to be changed so that sellers can originate and service loans on any property they own, whether it’s a principal residence or not.
Make your voice heard!
Mike Sumsky
I would like the definitions in the proposed rules to be changed so that sellers can originate and service loans on any property they own, whether it’s a principal residence or not. This seems to me a right we should have as property owners. Furthermore, it would appear that not being allowed to service a loan on our own property would hurt our ailing economy even more.
Well said Cheryl. Hopefully our comments will be heard and this crazy proposal will be changed. Thanks for your input.
I am also not in the favor of this crazy proposal. I just hate it. It can damage us a lot. It should be changed and i hope that it ‘ll definitely be changed.
The buying and selling of homes/property should be able to be done via seller financing due to the win-win that it creates. After such a economic crash there are very few people that can qualify for convitional financing.
I as well am not in favor of this selfish proposal, we as american people land of the free and home of the brave should be free to make decisions on our personal assets. People like me see people like your proposal creators a pain in the reality industrie and creates problems for people like me to own a home through honest realitors who try to help people like and my family with a step towards have a piece of what america is about!
This is just another way for the government to get more control. Some times bad things happen to good people finacally. In which case the dream of a home is years down the road unless you have the opportunity for a lease option. The American dream no matter how it is acheived is still our right. This is an issue that needs to be addressed as I am one that is looking for a lease to own.At this point I for-see regulatios put on the owners/sellers. Steven Prissel
I find it rather amazing that the govt is going from absolutely no involvement in mortgage industry to now also taking away the privilege & ability of individuals to sell their homes via owner financing on their own property. Is this simply banking industry big hitters controlling every aspect of lending? Right now the govt. has no control in the mortgage business. They basically gave taxpayer money, letting mortgage companies run rough shod over the individuals they were supposed to be helping. From what I have heard, >5% of people who were supposedly assisted helped by the mortg. bailout have been. The money given to them came from the taxpayers that you are now trying to control, without our approval. Enough is enough! The reason we NEED owner financing as an option is due to the fact that the govt and mortg companies simply can’t and haven’t done their jobs correctly in the first place. It’s our money, earned with our sweat and tears and apparently the only way that we can sell without going to short sale status is owner finance. Raquel
I’m curious if the ‘powers-that-be’ have even looked at this. I would imagine that more than a few of them have multiple housing pieces (more than one residence) and would be also affected by this proposed change to what I’m going to call a civil liberty – resale of private property.
As I understand it, this is a proposal that limits a private individuals right to negotiate buying or selling private property that will be mortgaged through a private party. Private individuals will have to register with the state as a “loan originator”, be subject to education classes, testing, fingerprinting, background checks etc. and would have to have continued education credits for yearly renewal if they wish to maintain the rights they already have now. Private individuals should be excluded from the S.A.F.E. Mortgage Act and the proposed changes by HUD. The proposed changes are, however, much needed for the professional real estate & mortgage lenders participating in these transactions. I feel this proposal eliminates the opportunity for private individuals to carry a mortgage contract or use “For Sale by Owner” or “Lease to Own” when marketing their private property whether it is a primary residence or investment property.