If you are in the real estate industry and involved in the buying and selling of residential properties, please visit www.savesellerfinancing.org. Why?
The Dodd-Frank Act, effective January 2013, amended the Truth in Lending Act and established some new rules concerning seller financing. These rules became effective January 2014, and apply only to properties that the buyer is going to reside in.
The problem is that Dodd-Frank was intended to curb abuses that arose out of the mortgage meltdown and Great Recession. Big banks and major mortgage lenders were the guilty parties – not you or me selling a home and carrying the note. The government, in its wisdom, threw us in with the big boys, and essentially limited our right to sell as many homes as we cared to. It limits our actions and provides guidelines on our “behavior” in assessing our buyer and terms we agree to with him.
Knowing the rules, most of us – doing Mom and Pop transactions – can comfortably live with them. But we should not be compared to or become a part of the big lenders who caused the problems with faulty due diligence.
Save seller financing has been working with the Consumer Financial Protection Bureau to point out these disparities and get them to understand that we are just plain folks trying to help the housing market and economy. Slowly, progress is being made.They need our help.
Please go the website. Read about the issues. Join the coalition. Donate.