http://money.cnn.com/2010/03/02/real_estate/real_estate_deals.moneymag/index.htm

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:

1. 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)
2. Review document as you need
3. On the right of the next screen, click on “submit comment”
4. 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)

• Document Details HERE
• Submit a Comment by March 5, 2010 HERE

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

This is great news not only for homebuyers, but investors too.  Real estate investors and rehabbers have been vital to the real estate recovery, purchasing and rehabilitating properties which have sat vacant and often vandalized after foreclosure.  Oftentimes, the process of buying, fixing and re-marketing the home occurs in a period much faster than 90-days and this will allow a much larger buyer pool and give many first-time homebuyers access to these properties.

The new policy will go in effect on February 1, 2010 and will remain in place for one year unless it is extended or withdrawn, and the waiver is limited to properties which meet certain general conditions such as:

• Sale must be an arms-length transaction
• If the property is re-sold for more than 20 percent of the purchase price, the resale price must be justified because of improvements made or other justification given by an appraiser.
• Only pertains to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for Purchase program.

More information can be found at the HUD website.