- Joined
- May 27, 2009
- Messages
- 37
This is an email I received, which I'm sharing; as a possible foretaste of things to come north of the border?
>>>
Let Federal Reserve Know that Proposed Seller Financing Rules Should not be
Enacted!
BY: Robert Diamond, Esq. and Edmond D. Diamond, MBA
In an
incredible show of effective bank/mortgage lander lobbying or government
ignorance the Federal Reserve is considering rules that may end a seller's
ability to finance their own property and sell on terms to a buyer!
http://www.federalreserve.gov/newsevents/press/bcreg/20110419a.htm
The
problem is that the Federal Reserve has proposed new rules from implementing the
Dodd Frank act. Those rules would effectively eliminate seller financing! If you
believe that seller financing is important to this real estate market, we need
you to let them know that you don't want these rules enacted. The comment is
this Friday, July 22nd, 2011.
It is incredible that in an environment
where mortgage financing is hard to get and the real estate market is hampered
by problems many have getting loans, that the government is set to essentially
outlaw seller financing.
My guess is that mortgage companies and banks
are lobbying to prevent seller financing so they have the market all to
themselves and can charge whatever interest rates they want and impose any terms
they want. The numbers of creative financing deals such as lease-options, seller
financing, options and other creative financing deals are increasing so sellers
can get properties sold. This is a natural outgrowth of difficulty in finding
buyers who can get a conventional mortgage.
Sellers need to sell, buyers
want to buy and in many cases the banks and mortgage companies stand in the way
because they are so strict with lending criteria including high down payment
requirements high credit score requirements.
There are many people who
have blemished credit because of the economic downturn - even foreclosures and
short sales but who are good qualified owners but are locked out of the housing
market unless they can get non-traditional financing.
Our over-zealous
government is now proposing that it completely control seller financing in this
country and the rules are so convoluted (179 pages) that most sellers will be
too scared to offer seller financing. It is such a bad idea to eliminate a way
to sell houses and get buyers financing at a time in our history when sellers
need to sell and buyers want to buy and the residential real estate market has
been hampered by financing issues to eliminate an alternative.
The
problem is that the rules were made for traditional lenders to follow but the
problem is that If these rules are passed without an exemption for seller
financing, an individual who wants to sell their own home will be required to
understand and comply with 169 pages of rules with draconian penalties for
non-compliance that could bankrupt a seller.
So here is what you can do
and should do now:
Follow the links below if you want to learn more about
the topic, how you can comment on the rules and also provide you with ideas and
suggestions for your comments.
To learn more about the rules and how they
will impact seller financing please go to: http://papersourceonline.com/2786/red-alert-seller-mortgages-may-be-outlawed-you-must-act-now/
To
submit your comment on the proposed rule, go to the following link and scroll
down to the bottom of the page where you will see the word "Comments" and next
to that you will see "Submit."
Click on "Submit" and then make your voice
heard!!!
Here is a potential comment - please revise before you
submit:
"I am writing to request that you make an exception for
owner-financed transactions! I support Buyers and Sellers being free to
contract to make non-traditional arrangements to buy, sell and finance real
estate. So many people are locked out of the traditional financing market today
and a few get releif by reaching a private arrangement with a seller to offer
them some form of private financing. That may be in the form of a mortgage
granted the seller, a lease-option, an installment sale or some other
non-traditional financing methodology.
Private sellers are in no position
to comply with a 169 page set of rules and regulations in order to offer such
financing and should not have to understand and comply with those rules unless
they are in the business of providing such loans as shown by more than three
transactions a year. These proposed rules as applied to seller financed
transactions solve a non-existent problem and will lock consumers who do not
have stellar credit out of the housing market - maybe permanently.
Seller-financed deals had nothing to do with the current lending crisis or
financing melt-down and no rule is needed to control them. Eliminating the
realistic possibility of seller financing by making complicated rules with
draconian penalties for non-compliance will only further hurt American home
sellers and home buyers who wish to make a non-traditional arrangement between
people."
http://www.federalreserve.gov/newsevents/press/bcreg/20110419a.htm
Make
your voice heard by submitting your comments to the rule. Your opinion
matters!
>>>
Let Federal Reserve Know that Proposed Seller Financing Rules Should not be
Enacted!
BY: Robert Diamond, Esq. and Edmond D. Diamond, MBA
In an
incredible show of effective bank/mortgage lander lobbying or government
ignorance the Federal Reserve is considering rules that may end a seller's
ability to finance their own property and sell on terms to a buyer!
http://www.federalreserve.gov/newsevents/press/bcreg/20110419a.htm
The
problem is that the Federal Reserve has proposed new rules from implementing the
Dodd Frank act. Those rules would effectively eliminate seller financing! If you
believe that seller financing is important to this real estate market, we need
you to let them know that you don't want these rules enacted. The comment is
this Friday, July 22nd, 2011.
It is incredible that in an environment
where mortgage financing is hard to get and the real estate market is hampered
by problems many have getting loans, that the government is set to essentially
outlaw seller financing.
My guess is that mortgage companies and banks
are lobbying to prevent seller financing so they have the market all to
themselves and can charge whatever interest rates they want and impose any terms
they want. The numbers of creative financing deals such as lease-options, seller
financing, options and other creative financing deals are increasing so sellers
can get properties sold. This is a natural outgrowth of difficulty in finding
buyers who can get a conventional mortgage.
Sellers need to sell, buyers
want to buy and in many cases the banks and mortgage companies stand in the way
because they are so strict with lending criteria including high down payment
requirements high credit score requirements.
There are many people who
have blemished credit because of the economic downturn - even foreclosures and
short sales but who are good qualified owners but are locked out of the housing
market unless they can get non-traditional financing.
Our over-zealous
government is now proposing that it completely control seller financing in this
country and the rules are so convoluted (179 pages) that most sellers will be
too scared to offer seller financing. It is such a bad idea to eliminate a way
to sell houses and get buyers financing at a time in our history when sellers
need to sell and buyers want to buy and the residential real estate market has
been hampered by financing issues to eliminate an alternative.
The
problem is that the rules were made for traditional lenders to follow but the
problem is that If these rules are passed without an exemption for seller
financing, an individual who wants to sell their own home will be required to
understand and comply with 169 pages of rules with draconian penalties for
non-compliance that could bankrupt a seller.
So here is what you can do
and should do now:
Follow the links below if you want to learn more about
the topic, how you can comment on the rules and also provide you with ideas and
suggestions for your comments.
To learn more about the rules and how they
will impact seller financing please go to: http://papersourceonline.com/2786/red-alert-seller-mortgages-may-be-outlawed-you-must-act-now/
To
submit your comment on the proposed rule, go to the following link and scroll
down to the bottom of the page where you will see the word "Comments" and next
to that you will see "Submit."
Click on "Submit" and then make your voice
heard!!!
Here is a potential comment - please revise before you
submit:
"I am writing to request that you make an exception for
owner-financed transactions! I support Buyers and Sellers being free to
contract to make non-traditional arrangements to buy, sell and finance real
estate. So many people are locked out of the traditional financing market today
and a few get releif by reaching a private arrangement with a seller to offer
them some form of private financing. That may be in the form of a mortgage
granted the seller, a lease-option, an installment sale or some other
non-traditional financing methodology.
Private sellers are in no position
to comply with a 169 page set of rules and regulations in order to offer such
financing and should not have to understand and comply with those rules unless
they are in the business of providing such loans as shown by more than three
transactions a year. These proposed rules as applied to seller financed
transactions solve a non-existent problem and will lock consumers who do not
have stellar credit out of the housing market - maybe permanently.
Seller-financed deals had nothing to do with the current lending crisis or
financing melt-down and no rule is needed to control them. Eliminating the
realistic possibility of seller financing by making complicated rules with
draconian penalties for non-compliance will only further hurt American home
sellers and home buyers who wish to make a non-traditional arrangement between
people."
http://www.federalreserve.gov/newsevents/press/bcreg/20110419a.htm
Make
your voice heard by submitting your comments to the rule. Your opinion
matters!
