You’ve got a another year to refinance those high LTV loans!

Federal Housing Finance Agency (FHFA) acting director Ed DeMarco announced the extension of the Home Affordable Refinance Program (HARP), for an additional year, ending June 30, 2011.  HARP is the refinance branch of the Making Home Affordable Program.

This is great news if you  want to refinance, but declining property values have created a high loan-to-value.  Under this program, you may qualify for refinancing with up to a 125% LTV.

DeMarco said, “FHFA has reviewed the current market situation and the state of mortgage insurance availability and has determined that the market conditions that necessitated the actions taken last year have not materially changed.”

He continued,  “Accordingly, to support and promote market stability, and to encourage lenders and other mortgage market participants to fully adopt the HARP program, including the implementation of the October 2009 expansion of loan-to-value ratios (LTVs) to 125%, FHFA is authorizing the extension of HARP until June 30, 2011.”

Awesome news!

4 Days Left to Save Seller Financing!

Can you believe this?

Loan Originator’s License Required to Seller Finance Your Rental Properties

That’s where we’re headed if you don’t submit your comment NOW to stop HUD from enacting this ridiculous requirement as part of their Proposed Rules on the SAFE Mortgage Act!

Only 4 days left to voice your opinion and stop this terrible violation of our rights as property owners!

We’re up to over 2500 comments posted on the HUD site.   That’s awesome, but we need more!  If you’ve already posted your comment, please forward this email to others requesting that they do the same.

Please take 5 minutes right NOW and post your objection on the HUD website.  Just click the  link below for direct access.   If you don’t know what to say, scroll down and see the samples that I created for you.   You can use them verbatim or tweak around to suit yourself.  For your convenience, I’ve also included a synopsis of the Proposed Rules below.

>>>>>CLICK HERE TO SUBMIT YOUR COMMENT TO HUD<<<<<

TO READ THE PROPOSED RULES in detail (not recommended—they are very lengthy and cumbersome):

1)      Go to www.regulations.gov .

2)      Use the Document Type drop down box to select “PROPOSED RULES”;  under Keyword, enter “SAFE MORTGAGE”; press “SEARCH.”

3)      Under results, click on  “FR-5271-P-01 Safe Mortgage Licensing Act: HUD Responsibilities…”   (It will probably be the first result.)

For your convenience, I’ve written up a brief summary below.

TO VIEW OTHER PEOPLE’S COMMENTS: Follow the above directions, then click on “Open Document Folder” in the far right hand column on the www.regulations.gov  site.

TO VIEW YOUR OWN COMMENT: just search for your own name.

WHAT SHOULD YOU SAY?

Make sure to request that they change the Proposed Rules so that property owners will NOT need a license to offer Seller Financing on their non-owner occupied homes. Let them know how devastating this will be to you, potential homeowners,  and the entire economy.

Be polite and to the point.  Here are some ideas:

• Seller financing is an “age old” tradition based on the principle that all owners should have the right to sell their property.
• Seller financing is sometimes the only way a person can sell their property.
• Seller financing is sometimes the only way a person can BUY a property.
• Many people do not qualify for bank loans under today’s strict guidelines.
• Bank loans are not even available on certain types of properties.
• The proposed rules would prohibit even partial seller financing  such as a second mortgage.
• According to HUD’s “Residential Finance Survey” in 2001, roughly 40% of all non-farm residential properties in the US are owned free and clear, and are therefore perfect candidates for Seller Financing.
• Many innocent people could suffer financial devastation if they were prohibited from using seller-financing to quickly sell their properties if necessary:
  • An estimated 6 million Americans own a property other than their own primary residence.
  • An estimated 4.5% of Americans own three or more properties, many purchased solely as investment properties.
  • 40% of non-owner occupied residences are mobile homes which are more difficult to sell with bank financing.
  • Approximately 5% of homes in US are for sale or for lease;  seller financing may be key to liquidating this inventory.

SAMPLE COMMENTS FOR YOU TO USE

If you don’t know what to say or don’t have time to put your thoughts together, below are a couple of  examples.  Pick the one that suits you best, then just cut and paste it into the comment box on the www.regulations.gov site.   You can tweak it around to make it fit your situation before you click “submit.“    I can’t make it any easier than that!

* * * * * * * * * *

Please amend the Proposed Rules to allow individuals to originate loans without a license on properties they personally own (1) whether or not they lived in the property and (2) whether they hold title in their own name or another entity, such as a limited liability company, a corporation, or trust.

I have been a real estate investor for many years.  I have always sold my properties with seller financing.  It is the perfect way for me to keep my money invested in my properties without me having to deal with the headaches of owning the property.   More importantly, it allows me to help families experience the joy of owning a home, especially when today’s strict guidelines preclude so many good borrowers from getting a loan.

I am not physically or financially able to take the courses and meet the criteria for obtaining a loan originator’s license. These Proposed Rules would be devastating to me and my real estate business.    If I were not able to offer seller financing, I would lose the opportunity to sell my properties to good people, just because banks won’t loan them money.

This is a major violation of my rights as a property owner.  I should be able to sell my own property to whomever I want without the undue hardship of having to obtain a license.

Please do not put these kinds of restrictions on seller financing.   We all need seller financing.   It is good for the seller, good for the buyer, and good for the housing industry and our economy.

I urge you to allow property owners to offer seller financing on non-owner occupied properties without having to obtain a license.

* * * * * * * * * *

I am writing to urge you to change the Proposed Rules to allow real estate investors to offer seller financing on their non-owner occupied properties, without having the undue hardship of obtaining a loan originator’s license.  This is grossly unfair to property owners and a terrible violation of their rights.

Seller financing has been a god-send for many people nationwide.  It allows distressed property owners to sell their properties quickly without losing buyer after buyer, all because the banks have decided they don’t qualify for a loan.  As a property owner, I should be able to sell my property when I want and to whomever I want—without having to go through the stringent licensing requirements that you are proposing.

Seller financing is a wonderful alternative for good buyers who are rejected by banks because of the bank’s own strict guidelines.  Without seller financing, many good families would not be able to own a home.  Even the government has recognized the importance of  seller financing by allowing the use of the First Time Home Buyer Credit on seller financed properties.

The mortgage meltdown that we have experienced over the past two years is not from seller-financing.  It is from within the mortgage industry.   Don’t punish real estate investors and innocent home buyers by imposing these strict requirements that should be reserved for the mortgage industry.

Please change these Proposed Rules to allow property owners to offer seller financing without having to obtain a license, whether they have lived in the property or not.

* * * * * * * * * *

SUMMARY OF THE PROPOSED RULES:

The Proposed Rules are very long and cumbersome.  Below is a list of the loosely interpreted key points that most real estate investors and note buyers may be interested in knowing.   I must add this disclaimer:   I AM NOT AN ATTORNEY.  Do NOT use this synopsis to determine if you are in compliance or not.  If you are engaged in originating or modifying loans, consult your own attorney for a legal interpretation of these rules for your particular situation.

1.   What is this?

The Secure and Fair Enforcement Mortgage Licensing Act of 2008 (SAFE Act) was enacted into law on July 30, 2008 as part of the Housing and Economic Recovery Act of 2008.   If individual states fail to enact their own laws to meet the minimum requirements of the SAFE Act, then these HUD Proposed Rules will govern licensing loan originators in those states.   States cannot exempt individuals that HUD determines must be licensed.

2. Who does it apply to?

The Proposed Rules require that anyone who is originating and/or modifying residential loans must obtain a license, except for:

• Individuals who carry back a mortgage secured by a property that served as their own residence (You would need a license to offer seller financing when wholesaling a property or selling one of your rentals!)

• An individual who is negotiating terms of a loan on behalf of a family member
• A licensed real estate broker
• An attorney (with restrictions)
• A bank
• Someone only extending credit for timeshare plans
• A clerical person or underwriter operating under the direction of an individual who is properly licensed under the Proposed Rules
• An employee of a bank who is registered with and maintains a unique identifier through the Nationwide Mortgage Licensing System and Registry

3. What do I need to do to get licensed?

Obtaining a license under the Proposed Rules involves:

• A background check; credit report; finger printing; administrative, civil, or criminal findings by any governmental institution
• No felony convictions within preceding 7 years, some felony convictions prohibited completely
• 20 hours of approved education
• Pass a written test
• Submit Mortgage Call reports detailing your lending activity
• Be under the authority of a State Loan Originator Supervisory Authority

4.  Can states supersede this proposed law by passing their own legislation?   NO!

Word has been going around that some states have successfully circumvented the proposed HUD rule that would require all sellers who offer seller financing on non-owner occupied properties to obtain a loan originator’s license  (unless they are an attorney or licensed real estate agent).  This is not true!  States cannot supersede HUD’s Proposed Rules!

Here’s what I got directly from HUD:

“HUD will determine the minimum standards for SAFE compliance once the comments are reviewed and decisions made.  States cannot exempt individuals that HUD determines must be licensed but can require additional categories be licensed.”

That means that states cannot supersede HUD by passing their own legislation.  In other words, it is absolutely critical that we stop this at the source by continuing to flood HUD with comments objecting to this blatant violation of our property rights.

Thanks for all of your comments, but most of all thanks for standing united on this urgent issue!

Do NOT  voice your opinion to HUD by clicking “Comments” below this post.   That is just for commenting on my blog!   HUD will not see it .   Follow the directions in red above.  (Not that I don’t love getting comments on my blog!)

Have a wonderful day!

—Donna

*Update on HUD SAFE Mortgage Act

I’m fighting mad!

Hey!   I’ve got new information for you on the HUD SAFE Mortgage Act.  Word has been going around that some states have successfully circumvented the proposed HUD rule that would require all sellers who offer seller financing on non-owner occupied properties to obtain a loan originator’s license  (unless they are an attorney or licensed real estate agent).  This is not true!  States cannot supersede HUD’s Proposed Rules!

Here’s what I got direct from HUD today:

“HUD will determine the minimum standards for SAFE compliance once the comments are reviewed and decisions made.  States cannot exempt individuals that HUD determines must be licensed but can require additional categories be licensed.”

That means that states cannot supersede HUD by passing their own legislation.  In other words, it is absolutely critical that we stop this at the source by continuing to flood HUD with comments objecting to this blatant violation of our property rights.

These new HUD Proposed Rules would force real estate investors to be licensed in order to offer seller-financing on their non-owner occupied properties.

As experts in this industry, we must speak up and let HUD know what a drastic effect this will have on real estate investors and potential home buyers across the country.  Seller Financing is playing a vital role in turning this housing market around—we can’t let them take it away!

As of today, over 1800 comments are posted on the HUD site.  We’ve got to keep them coming before the March 5th deadline.

If you’ve already posted your comment, please forward this email to others requesting that they do the same.

Please take 10 minutes right NOW and post your objection on the HUD website.  Just click the  link below for direct access.   If you don’t know what to say, scroll down and see the samples that I created for you.   You can use them verbatim or tweak around to suit yourself.  For your convenience, I’ve also included a synopsis of the Proposed Rules below.

CLICK HERE TO SUBMIT YOUR COMMENT TO HUD

TO READ THE PROPOSED RULES in detail (not recommended—they are very lengthy and cumbersome):

1)      Go to www.regulations.gov .

2)      Use the Document Type drop down box to select “PROPOSED RULES”;  under Keyword, enter “SAFE MORTGAGE”; press “SEARCH.”

3)      Under results, click on  “FR-5271-P-01 Safe Mortgage Licensing Act: HUD Responsibilities…”   (It will probably be the first result.)

For your convenience, I’ve written up a brief summary below.

TO VIEW OTHER PEOPLE’S COMMENTS: Follow the above directions, then click on “Open Document Folder” in the far right hand column on the www.regulations.gov  site.

TO VIEW YOUR OWN COMMENT: just search for your own name.

WHAT SHOULD YOU SAY?

Be polite and to the point.  Basically, you want to request that the definitions in the Proposed Rules be changed to allow private individuals to originate loans on properties they personally own whether or not they live in the property and whether they hold title in their own name or another entity (such as an LLC, corporation or trust). Let them know how devastating this will be to you and to the industry.   Here are some ideas:

• Seller financing is an “age old” tradition based on the principle that all owners should have the right to sell their property.
• Seller financing is sometimes the only way a person can sell their property.
• Seller financing is sometimes the only way a person can BUY a property.
• Many people do not qualify for bank loans under today’s strict guidelines.
• Bank loans are not even available on certain types of properties.
• The proposed rules would prohibit even partial seller financing  such as a second mortgage.
• According to HUD’s “Residential Finance Survey” in 2001, roughly 40% of all non-farm residential properties in the US are owned free and clear, and are therefore perfect candidates for Seller Financing.
• Many innocent people could suffer financial devastation if they were prohibited from using seller-financing to quickly sell their properties if necessary:
  • An estimated 6 million Americans own a property other than their own primary residence.
  • An estimated 4.5% of Americans own three or more properties, many purchased solely as investment properties.
  • 40% of non-owner occupied residences are mobile homes which are more difficult to sell with bank financing.
  • Approximately 5% of homes in US are for sale or for lease;  seller financing may be key to liquidating this inventory.

SAMPLE COMMENTS FOR YOU TO USE

If you don’t know what to say or don’t have time to put your thoughts together, below are a couple of  examples.  Pick the one that suits you best, then just cut and paste it into the comment box on the www.regulations.gov site.   You can tweak it around to make it fit your situation before you click “submit.“    I can’t make it any easier than that!

* * * * * * * * * *

Please amend the Proposed Rules to allow individuals to originate loans without a license on properties they personally own (1) whether or not they lived in the property and (2) whether they hold title in their own name or another entity, such as a limited liability company, a corporation, or trust.

I have been a real estate investor for many years.  I have always sold my properties with seller financing.  It is the perfect way for me to keep my money invested in my properties without me having to deal with the headaches of owning the property.   More importantly, it allows me to help families experience the joy of owning a home, especially when today’s strict guidelines preclude so many good borrowers from getting a loan.

I am not physically or financially able to take the courses and meet the criteria for obtaining a loan originator’s license. These Proposed Rules would be devastating to me and my real estate business.    If I were not able to offer seller financing, I would lose the opportunity to sell my properties to good people, just because banks won’t loan them money.

This is a major violation of my rights as a property owner.  I should be able to sell my own property to whomever I want without the undue hardship of having to obtain a license.

Please do not put these kinds of restrictions on seller financing.   We all need seller financing.   It is good for the seller, good for the buyer, and good for the housing industry and our economy.

I urge you to allow property owners to offer seller financing on non-owner occupied properties without having to obtain a license.

* * * * * * * * * *

I am writing to urge you to change the Proposed Rules to allow real estate investors to offer seller financing on their non-owner occupied properties, without having the undue hardship of obtaining a loan originator’s license.  This is grossly unfair to property owners and a terrible violation of their rights.

Seller financing has been a god-send for many people nationwide.  It allows distressed property owners to sell their properties quickly without losing buyer after buyer, all because the banks have decided they don’t qualify for a loan.  As a property owner, I should be able to sell my property when I want and to whomever I want—without having to go through the stringent licensing requirements that you are proposing.

Seller financing is a wonderful alternative for good buyers who are rejected by banks because of the bank’s own strict guidelines.  Without seller financing, many good families would not be able to own a home.  Even the government has recognized the importance of  seller financing by allowing the use of the First Time Home Buyer Credit on seller financed properties.

The mortgage meltdown that we have experienced over the past two years is not from seller-financing.  It is from within the mortgage industry.   Don’t punish real estate investors and innocent home buyers by imposing these strict requirements that should be reserved for the mortgage industry.

Please change these Proposed Rules to allow property owners to offer seller financing without having to obtain a license, whether they have lived in the property or not.

* * * * * * * * * *

SUMMARY OF THE PROPOSED RULES:

The Proposed Rules are very long and cumbersome.  Below is a list of the loosely interpreted key points that most real estate investors and note buyers may be interested in knowing.   I must add this disclaimer:   I AM NOT AN ATTORNEY.  Do NOT use this synopsis to determine if you are in compliance or not.  If you are engaged in originating or modifying loans, consult your own attorney for a legal interpretation of these rules for your particular situation.

1.   What is this?

The Secure and Fair Enforcement Mortgage Licensing Act of 2008 (SAFE Act) was enacted into law on July 30, 2008 as part of the Housing and Economic Recovery Act of 2008.   If individual states fail to enact their own laws to meet the minimum requirements of the SAFE Act, then these HUD Proposed Rules will govern licensing loan originators in those states.   States cannot exempt individuals that HUD determines must be licensed.

2. Who does it apply to?

The Proposed Rules require that anyone who is originating and/or modifying residential loans must obtain a license, except for:

• Individuals who carry back a mortgage secured by a property that served as their own residence (You would need a license to offer seller financing when wholesaling a property or selling one of your rentals!)

• An individual who is negotiating terms of a loan on behalf of a family member
• A licensed real estate broker
• An attorney (with restrictions)
• A bank
• Someone only extending credit for timeshare plans
• A clerical person or underwriter operating under the direction of an individual who is properly licensed under the Proposed Rules
• An employee of a bank who is registered with and maintains a unique identifier through the Nationwide Mortgage Licensing System and Registry

3. What do I need to do to get licensed?

Obtaining a license under the Proposed Rules involves:

• A background check; credit report; finger printing; administrative, civil, or criminal findings by any governmental institution
• No felony convictions within preceding 7 years, some felony convictions prohibited completely
• 20 hours of approved education
• Pass a written test
• Submit Mortgage Call reports detailing your lending activity
• Be under the authority of a State Loan Originator Supervisory Authority

Thanks for all of your comments, but most of all thanks for standing united on this urgent issue!

Do NOT  voice your opinion to HUD by clicking “Comments” below this post.   That is just for commenting on my blog!   HUD will not see it .   Follow the directions in red above.  (Not that I don’t love getting comments on my blog!)

Have a wonderful day!

—Donna

*Watch the Q & A Replay Now

Hi!  The re-play of our Q & A on live streaming video Sunday night is now available!

It was fantastic!   We had a lot of great questions on all sorts of topics—the difference between short sales and note buying, working with realtors on short sales, the HUD Safe Mortgage Act, how the short sale process has changed in today’s market, and a whole lot more.  Check it out now— Just click here to start watching.

Got a question I didn’t cover?   Email it to www.askdonna@thenotebuyer.com.  Be sure to check back on the blog for your answer!   Better yet,  sign up for our email list on the blog home page and automatically receive the posts.  If you’re not viewing this on the blog site, just go to www.thenotebuyer.com and click through to Donna’s Blog.

Have a wonderful day!

Donna

*FREE Q&A With Me Tonight!

Boy, I have been barraged with questions for tonight’s free Q & A on live streaming video at 9pm ET.   It’s going to be a power-packed hour of information as we compare short sales to note purchases and discuss the many changes in processing short sales, not to mention legal issues, how to deal with realtors, the big question—-where to find the money, and a whole lot more!  Lines open at 8:50pm.  Go to www.donnabauerlive.com.  We’ll start promptly at 9pm.  See you then!

*Is the Expert Really an Expert?

Good evening!    I’m so glad the weekend is here!

Yesterday I was talking to some folks and came across something that made me kind of sick to my stomach.  It’s not something I like to discuss, but I fear if I don’t, a lot of unsuspecting people are going to wind up in trouble.

Without a doubt, opportunities abound right now in the real estate market.   There is a lot of money to be made right now.  Unfortunately, along with those opportunities come opportunists— individuals who practice opportunism.   Merriam-Webster defines opportunism as:

the art, policy, or practice of taking advantage of opportunities or circumstances often with little regard for principles or consequences.

That last part is the problem—with little regard for principles or consequences. Recognizing that this is one of the best buyers’ markets we’ve seen in a long time, a lot of newbies have jumped into the game.   They’re buying and selling, leasing and optioning, wholesaling and retailing, short saling and long buying (that was a joke!).   My goodness, there are so many ways to make money in today’s exciting market.

Now don’t get me wrong, I love newbies.   (I once was one!)  I truly admire the person who has a dream, makes a plan, and jumps in the game to make it happen.  But for his sake, I hope and pray that he has done his homework and found a trustworthy mentor to show him the ropes.

The opportunist that I am referring to is the inexperienced, uneducated individual that throws himself out there to be a mentor to unsuspecting, trusting souls who are diligently seeking the knowledge and mentoring that they need to take advantage of this great market.

A few minutes on Google will open your eyes to all of the get rich schemes touted by self-proclaimed “gurus.”    Someone closes a few deals and the next thing you know, they’re the “King of this” and the “Queen of that.”   Unfortunately, most of these overnight blue-bloods do not have the knowledge and experience to back up their claim to the throne.   And more importantly,  they do not care about the consequences that their own negligence and/or lack of knowledge will have on the innocent people that look to them for guidance.  Yep!   You’ve heard it before—all they care about is making money off of books and tapes, well—now books and cds.

What started me down this path was when a friend of mine showed me a contract that was being passed around as a sample of the latest and greatest contract to use for purchasing real estate.  Literally, my mouth fell open as I read it.  The contract was fraught with major issues, to the extent that it was not even a valid contract!   There were several clauses that contradicted each other, and others that were virtually useless in carrying out their intended purpose.  Clearly, someone had combined two different contracts without knowing how to do so.  Worse yet, it appeared that someone added whatever clauses suited their purpose, without regard to legalities and consequences.  Unless you had a real estate license, you could wind up facing criminal charges if you used that contract!

I was assured that this contract had been successfully used over and over again by various people, and I don’t doubt it.  A lot of the contract clauses are to protect you from issues that may arise.  As long as the deal goes smoothly, many of the provisions of a contract never even come into play.  But if a buyer gets upset and calls the attorney general, even if they don’t have a valid complaint, you best have your “i’s” dotted and “t’s” crossed.

I have been in business for over 20 years and been involved in over 1000 various transactions in some capacity.  I am not an attorney, but I do have more  “on the job training” than many attorneys.  I am not perfect and I don’t know everything, but I do have my personal real estate attorney give his blessing to any documents that I pass on to my students.  While I can’t promise you that my documents comply with the laws in all 50 states, I can tell you that they are good, solid foundational documents that you can pass on to your local attorney for his blessing.

So when I consider the care that I have taken to look out for my students,  it does make me sick to my stomach when I see an opportunist, who with blatant disregard for legal consequences, touts himself as a guru in order to make money off unsuspecting souls who genuinely want to learn how to profit in this awesome real estate market.

This is an absolutely unprecedented market for building wealth.  Many millionaires were made during the Great Depression.  That’s nothing compared to the billionaires that are going to be made in today’s market!  If you have been thinking about getting involved in real estate, you could not pick a better time.

Just make sure to do your own due diligence in choosing your mentor.   Don’t get caught up in the Internet Marketing hype.  Make sure to find a trustworthy, knowledgeable mentor with considerable general real estate experience that has a heart for helping others to achieve their dreams.   There aren’t a lot of us out here, but if you look, you’ll find us.

Have a wonderful weekend!

—Donna Bauer

*You guys are awesome!

HUD has to be totally amazed at the barrage of comments they’ve received from us!   Don’t stop now . . . keep them coming!

Thank you!  Thank you!   Thank you!   —To everyone who has already commented.   In a few short days,   hundreds of new comments have been posted on the HUD site, and I know for a fact that a lot more than that have been submitted and are waiting to be posted.

Although HUD extended the deadline to comment until March 5th, they failed to change the deadline on their website in time.   If you were unable to comment, GO BACK!    The site is working now.   Below is a copy of my last post, complete with instructions and  a synopsis of the Proposed Rules.   I’ve even included a couple of sample comments that you can use verbatim or tweak around to fit your personal circumstances.   I can’t make it easier than that!

Let your voice be heard!  Forward this to others to take action!   Save Seller Financing and the Homeowners who need it!

—Donna Bauer

* * * * * * * * * *

You’ve still got time to stop HUD from destroying Seller Financing!

Due to the inclement weather in Washington, D.C., HUD has extended the deadline  to March 5, 2010 for submitting comments on the new Proposed Rules that would force real estate investors to be licensed in order to offer seller-financing on their non-owner occupied properties.

As experts in this industry, we must speak up and let HUD know what a drastic effect this will have on real estate investors and potential home buyers across the country.  Seller Financing is playing a vital role in turning this housing market around—we can’t let them take it away!

My biggest fear now is that everyone will put off voicing their opinions, and it will never get done.

Please take 10 minutes right NOW and go to www.regulations.gov and submit your comments.  If you don’t know what to say, scroll down for some samples I created for you to use.   Then come back here and follow these instructions to voice your opinion:

1)      Go to www.regulations.gov .

2)      Use the Document Type drop down box to select “PROPOSED RULES”;  under Keyword, enter “SAFE MORTGAGE”; press “SEARCH.”

3)      Under results, find “FR-5271-P-01 Safe Mortgage Licensing Act: HUD Responsibilities…”   (It will probably be the first result.)

4)      Select “SUBMIT YOUR COMMENT” and voice your opinion before March 5^th to stop HUD from taking yet another hit on our businesses!     Make sure you are on the www.regulations.gov site to voice your opinion to HUD.  The comment section below this post is just for comments concerning my blog. 

Notes:

TO READ THE PROPOSED RULES in detail (not recommended—they are very lengthy and cumbersome),  just click on “FR-5271-P-01 Safe Mortgage Licensing Act: HUD Responsibilities…”

For your convenience, I’ve written up a brief summary below.

TO VIEW OTHER PEOPLE’S COMMENTS, click on “Open Document Folder” in the far right hand column on the www.regulations.gov  site.

WHAT SHOULD YOU SAY?

Be polite and to the point.  Basically, you want to request that the definitions in the Proposed Rules be changed to allow private individuals to originate loans on properties they personally own whether or not they live in the property and whether they hold title in their own name or another entity (such as an LLC, corporation or trust). Let them know how devastating this will be to you and to the industry.   Here are some ideas:

• Seller financing is an “age old” tradition based on the principle that all owners should have the right to sell their property.
• Seller financing is sometimes the only way a person can sell their property.
• Seller financing is sometimes the only way a person can BUY a property.
• Many people do not qualify for bank loans under today’s strict guidelines.
• Bank loans are not even available on certain types of properties.
• The proposed rules would prohibit even partial seller financing  such as a second mortgage.
• According to HUD’s “Residential Finance Survey” in 2001, roughly 40% of all non-farm residential properties in the US are owned free and clear, and are therefore perfect candidates for Seller Financing.
• Many innocent people could suffer financial devastation if they were prohibited from using seller-financing to quickly sell their properties if necessary:
  • An estimated 6 million Americans own a property other than their own primary residence.
  • An estimated 4.5% of Americans own three or more properties, many purchased solely as investment properties.
  • 40% of non-owner occupied residences are mobile homes which are more difficult to sell with bank financing.
  • Approximately 5% of homes in US are for sale or for lease;  seller financing may be key to liquidating this inventory.

SAMPLE COMMENTS FOR YOU TO USE

If you don’t know what to say or don’t have time to put your thoughts together, below are a couple of  examples.  Pick the one that suits you best, then just cut and paste it into the comment box on the www.regulations.gov site.   You can tweak it around to make it fit your situation before you click “submit.“    I can’t make it any easier than that!

* * * * * * * * * *

Please amend the Proposed Rules to allow individuals to originate loans without a license on properties they personally own (1) whether or not they lived in the property and (2) whether they hold title in their own name or another entity, such as a limited liability company, a corporation, or trust.

I have been a real estate investor for many years.  I have always sold my properties with seller financing.  It is the perfect way for me to keep my money invested in my properties without me having to deal with the headaches of owning the property.   More importantly, it allows me to help families experience the joy of owning a home, especially when today’s strict guidelines preclude so many good borrowers from getting a loan.

I am not physically or financially able to take the courses and meet the criteria for obtaining a loan originator’s license. These Proposed Rules would be devastating to me and my real estate business.    If I were not able to offer seller financing, I would lose the opportunity to sell my properties to good people, just because banks won’t loan them money.

This is a major violation of my rights as a property owner.  I should be able to sell my own property to whomever I want without the undue hardship of having to obtain a license.

Please do not put these kinds of restrictions on seller financing.   We all need seller financing.   It is good for the seller, good for the buyer, and good for the housing industry and our economy.

I urge you to allow property owners to offer seller financing on non-owner occupied properties without having to obtain a license.

* * * * * * * * * *

I am writing to urge you to change the Proposed Rules to allow real estate investors to offer seller financing on their non-owner occupied properties, without having the undue hardship of obtaining a loan originator’s license.  This is grossly unfair to property owners and a terrible violation of their rights.

Seller financing has been a god-send for many people nationwide.  It allows distressed property owners to sell their properties quickly without losing buyer after buyer, all because the banks have decided they don’t qualify for a loan.  As a property owner, I should be able to sell my property when I want and to whomever I want—without having to go through the stringent licensing requirements that you are proposing.

Seller financing is a wonderful alternative for good buyers who are rejected by banks because of the bank’s own strict guidelines.  Without seller financing, many good families would not be able to own a home.  Even the government has recognized the importance of  seller financing by allowing the use of the First Time Home Buyer Credit on seller financed properties.

The mortgage meltdown that we have experienced over the past two years is not from seller-financing.  It is from within the mortgage industry.   Don’t punish real estate investors and innocent home buyers by imposing these strict requirements that should be reserved for the mortgage industry.

Please change these Proposed Rules to allow property owners to offer seller financing without having to obtain a license, whether they have lived in the property or not.

* * * * * * * * * *

SUMMARY OF THE PROPOSED RULES:

The Proposed Rules are very long and cumbersome.  Below is a list of the loosely interpreted key points that most real estate investors and note buyers may be interested in knowing.   I must add this disclaimer:   I AM NOT AN ATTORNEY.  Do NOT use this synopsis to determine if you are in compliance or not.  If you are engaged in originating or modifying loans, consult your own attorney for a legal interpretation of these rules for your particular situation.

1.   What is this?

The Secure and Fair Enforcement Mortgage Licensing Act of 2008 (SAFE Act) was enacted into law on July 30, 2008 as part of the Housing and Economic Recovery Act of 2008.   If individual states fail to enact their own laws to meet the minimum requirements of the SAFE Act, then these HUD Proposed Rules will govern licensing loan originators in those states

2. Who does it apply to?

The Proposed Rules require that anyone who is originating and/or modifying residential loans must obtain a license, except for:

• Individuals who carry back a mortgage secured by a property that served as their own residence (You would need a license to offer seller financing when wholesaling a property or selling one of your rentals!)

• An individual who is negotiating terms of a loan on behalf of a family member
• A licensed real estate broker
• An attorney (with restrictions)
• A bank
• Someone only extending credit for timeshare plans
• A clerical person or underwriter operating under the direction of an individual who is properly licensed under the Proposed Rules
• An employee of a bank who is registered with and maintains a unique identifier through the Nationwide Mortgage Licensing System and Registry

3. What do I need to do to get licensed?

Obtaining a license under the Proposed Rules involves:

• A background check; credit report; finger printing; administrative, civil, or criminal findings by any governmental institution
• No felony convictions within preceding 7 years, some felony convictions prohibited completely
• 20 hours of approved education
• Pass a written test
• Submit Mortgage Call reports detailing your lending activity
• Be under the authority of a State Loan Originator Supervisory Authority

Thanks for all of your comments, but most of all thanks for standing united on this urgent issue!

Do NOT  voice your opinion to HUD by clicking “Comments” below this post.   That is just for commenting on my blog!  HUD will not see it.   Follow the directions in red above.

Many thanks to Doug W. for providing the following link to see the extension:

http://www.hud.gov/offices/hsg/ramh/safe/safe-extend.pdf

Please pass this on to everyone you can.

Have a wonderful day!

—Donna

*HUD Extends Deadline to March 5, 2010!

Note:  Although HUD issued a press release announcing the extension through March 5th, the submission function on their website is rejecting comments.   I’m sure they will eventually get around to updating the website and we’ll be  able to start submitting comments again through March 5th.   Yet another example of our government in action!  Please try again in a day or so.   Thanks!

Great news, everyone!

You’ve still got time to stop HUD from destroying Seller Financing!

Due to the inclement weather in Washington, D.C., HUD has extended the deadline  to March 5, 2010 for submitting comments on the new Proposed Rules that would force real estate investors to be licensed in order to offer seller-financing on their non-owner occupied properties.

As experts in this industry, we must speak up and let HUD know what a drastic effect this will have on real estate investors and potential home buyers across the country.  Seller Financing is playing a vital role in turning this housing market around—we can’t let them take it away!

My biggest fear now is that everyone will put off voicing their opinions, and it will never get done.

Please take 10 minutes right NOW and go to www.regulations.gov and submit your comments.  If you don’t know what to say, scroll down for some samples I created for you to use.   Then come back here and follow these instructions to voice your opinion:

1)      Go to www.regulations.gov .

2)      Use the Document Type drop down box to select “PROPOSED RULES”;  under Keyword, enter “SAFE MORTGAGE”; press “SEARCH.”

3)      Under results, find “FR-5271-P-01 Safe Mortgage Licensing Act: HUD Responsibilities…”   (It will probably be the first result.)

4)      Select “SUBMIT YOUR COMMENT” and voice your opinion before March 5^th to stop HUD from taking yet another hit on our businesses!     Make sure you are on the www.regulations.gov site to voice your opinion to HUD.  The comment section below this post is just for comments concerning my blog. 

Notes:

TO READ THE PROPOSED RULES in detail (not recommended—they are very lengthy and cumbersome),  just click on “FR-5271-P-01 Safe Mortgage Licensing Act: HUD Responsibilities…”

For your convenience, I’ve written up a brief summary below.

TO VIEW OTHER PEOPLE’S COMMENTS, click on “Open Document Folder” in the far right hand column on the www.regulations.gov  site.

WHAT SHOULD YOU SAY?

Be polite and to the point.  Basically, you want to request that the definitions in the Proposed Rules be changed to allow private individuals to originate loans on properties they personally own whether or not they live in the property and whether they hold title in their own name or another entity (such as an LLC, corporation or trust). Let them know how devastating this will be to you and to the industry.   Here are some ideas:

• Seller financing is an “age old” tradition based on the principle that all owners should have the right to sell their property.
• Seller financing is sometimes the only way a person can sell their property.
• Seller financing is sometimes the only way a person can BUY a property.
• Many people do not qualify for bank loans under today’s strict guidelines.
• Bank loans are not even available on certain types of properties.
• The proposed rules would prohibit even partial seller financing  such as a second mortgage.
• According to HUD’s “Residential Finance Survey” in 2001, roughly 40% of all non-farm residential properties in the US are owned free and clear, and are therefore perfect candidates for Seller Financing.
• Many innocent people could suffer financial devastation if they were prohibited from using seller-financing to quickly sell their properties if necessary:
  • An estimated 6 million Americans own a property other than their own primary residence.
  • An estimated 4.5% of Americans own three or more properties, many purchased solely as investment properties.
  • 40% of non-owner occupied residences are mobile homes which are more difficult to sell with bank financing.
  • Approximately 5% of homes in US are for sale or for lease;  seller financing may be key to liquidating this inventory.

SAMPLE COMMENTS FOR YOU TO USE

If you don’t know what to say or don’t have time to put your thoughts together, below are a couple of  examples.  Pick the one that suits you best, then just cut and paste it into the comment box on the www.regulations.gov site.   You can tweak it around to make it fit your situation before you click “submit.“    I can’t make it any easier than that!

* * * * * * * * * *

Please amend the Proposed Rules to allow individuals to originate loans without a license on properties they personally own (1) whether or not they lived in the property and (2) whether they hold title in their own name or another entity, such as a limited liability company, a corporation, or trust.

I have been a real estate investor for many years.  I have always sold my properties with seller financing.  It is the perfect way for me to keep my money invested in my properties without me having to deal with the headaches of owning the property.   More importantly, it allows me to help families experience the joy of owning a home, especially when today’s strict guidelines preclude so many good borrowers from getting a loan.

I am not physically or financially able to take the courses and meet the criteria for obtaining a loan originator’s license. These Proposed Rules would be devastating to me and my real estate business.    If I were not able to offer seller financing, I would lose the opportunity to sell my properties to good people, just because banks won’t loan them money.

This is a major violation of my rights as a property owner.  I should be able to sell my own property to whomever I want without the undue hardship of having to obtain a license.

Please do not put these kinds of restrictions on seller financing.   We all need seller financing.   It is good for the seller, good for the buyer, and good for the housing industry and our economy.

I urge you to allow property owners to offer seller financing on non-owner occupied properties without having to obtain a license.

* * * * * * * * * *

I am writing to urge you to change the Proposed Rules to allow real estate investors to offer seller financing on their non-owner occupied properties, without having the undue hardship of obtaining a loan originator’s license.  This is grossly unfair to property owners and a terrible violation of their rights.

Seller financing has been a god-send for many people nationwide.  It allows distressed property owners to sell their properties quickly without losing buyer after buyer, all because the banks have decided they don’t qualify for a loan.  As a property owner, I should be able to sell my property when I want and to whomever I want—without having to go through the stringent licensing requirements that you are proposing.

Seller financing is a wonderful alternative for good buyers who are rejected by banks because of the bank’s own strict guidelines.  Without seller financing, many good families would not be able to own a home.  Even the government has recognized the importance of  seller financing by allowing the use of the First Time Home Buyer Credit on seller financed properties.

The mortgage meltdown that we have experienced over the past two years is not from seller-financing.  It is from within the mortgage industry.   Don’t punish real estate investors and innocent home buyers by imposing these strict requirements that should be reserved for the mortgage industry.

Please change these Proposed Rules to allow property owners to offer seller financing without having to obtain a license, whether they have lived in the property or not.

* * * * * * * * * *

SUMMARY OF THE PROPOSED RULES:

The Proposed Rules are very long and cumbersome.  Below is a list of the loosely interpreted key points that most real estate investors and note buyers may be interested in knowing.   I must add this disclaimer:   I AM NOT AN ATTORNEY.  Do NOT use this synopsis to determine if you are in compliance or not.  If you are engaged in originating or modifying loans, consult your own attorney for a legal interpretation of these rules for your particular situation.

1.   What is this?

The Secure and Fair Enforcement Mortgage Licensing Act of 2008 (SAFE Act) was enacted into law on July 30, 2008 as part of the Housing and Economic Recovery Act of 2008.   If individual states fail to enact their own laws to meet the minimum requirements of the SAFE Act, then these HUD Proposed Rules will govern licensing loan originators in those states

2. Who does it apply to?

The Proposed Rules require that anyone who is originating and/or modifying residential loans must obtain a license, except for:

• Individuals who carry back a mortgage secured by a property that served as their own residence (You would need a license to offer seller financing when wholesaling a property or selling one of your rentals!)

• An individual who is negotiating terms of a loan on behalf of a family member
• A licensed real estate broker
• An attorney (with restrictions)
• A bank
• Someone only extending credit for timeshare plans
• A clerical person or underwriter operating under the direction of an individual who is properly licensed under the Proposed Rules
• An employee of a bank who is registered with and maintains a unique identifier through the Nationwide Mortgage Licensing System and Registry

3. What do I need to do to get licensed?

Obtaining a license under the Proposed Rules involves:

• A background check; credit report; finger printing; administrative, civil, or criminal findings by any governmental institution
• No felony convictions within preceding 7 years, some felony convictions prohibited completely
• 20 hours of approved education
• Pass a written test
• Submit Mortgage Call reports detailing your lending activity
• Be under the authority of a State Loan Originator Supervisory Authority

Thanks for all of your comments, but most of all thanks for standing united on this urgent issue!

Do NOT  voice your opinion to HUD by clicking “Comments” below this post.   That is just for commenting on my blog!  HUD will not see it.   Follow the directions in red above.

Many thanks to Doug W. for providing the following link to see the extension:

http://www.hud.gov/offices/hsg/ramh/safe/safe-extend.pdf

Please pass this on to everyone you can.

Have a wonderful day!

—Donna

*Last Day Left to Stop HUD from Destroying Seller Financing!

Friends—

The deadline has been extended!   See my post on Feb 16th, HUD Extends Deadline to March 5th for up-to-date details!

This is the LAST DAY to stop HUD from forcing property owners to become a licensed mortgage originator in order to offer Seller Financing on their non-owner occupied properties!

As experts in this industry, we must speak up and let HUD know what a drastic effect this will have on real estate investors and potential home buyers across the country.  Seller Financing is playing a vital role in turning this housing market around—we can’t let them take it away!

TODAY, February 16th, is the deadline for submitting comments to HUD.   Please take a few minutes NOW and voice your opinion online at www.regulations.gov.  For complete directions, see my previous post below.

SAMPLE COMMENTS

If you don’t know what to say or don’t have time to put your thoughts together, below are a couple of  examples.  Pick the one that suits you best, then just cut and paste it into the comment box on the www.regulations.gov site.   You can tweak it around to make it fit your situation before you click “submit.“

* * * * * * * * * *

Please amend the Proposed Rules to allow individuals to originate loans without a license on properties they personally own (1) whether or not they lived in the property and (2) whether they hold title in their own name or another entity, such as a limited liability company, a corporation, or trust.

I have been a real estate investor for many years.  I have always sold my properties with seller financing.  It is the perfect way for me to keep my money invested in my properties without me having to deal with the headaches of owning the property.   More importantly, it allows me to help families experience the joy of owning a home, especially when today’s strict guidelines preclude so many good borrowers from getting a loan.

I am not physically or financially able to take the courses and meet the criteria for obtaining a loan originator’s license. These Proposed Rules would be devastating to me and my real estate business.    If I were not able to offer seller financing, I would lose the opportunity to sell my properties to good people, just because banks won’t loan them money.

This is a major violation of my rights as a property owner.  I should be able to sell my own property to whomever I want without the undue hardship of having to obtain a license.

Please do not put these kinds of restrictions on seller financing.   We all need seller financing.   It is good for the seller, good for the buyer, and good for the housing industry and our economy.

I urge you to allow property owners to offer seller financing on non-owner occupied properties without having to obtain a license.

* * * * * * * * * *

I am writing to urge you to change the Proposed Rules to allow real estate investors to offer seller financing on their non-owner occupied properties, without having the undue hardship of obtaining a loan originator’s license.  This is grossly unfair to property owners and a terrible violation of their rights.

Seller financing has been a god-send for many people nationwide.  It allows distressed property owners to sell their properties quickly without losing buyer after buyer, all because the banks have decided they don’t qualify for a loan.  As a property owner, I should be able to sell my property when I want and to whomever I want—without having to go through the stringent licensing requirements that you are proposing.

Seller financing is a wonderful alternative for good buyers who are rejected by banks because of the bank’s own strict guidelines.  Without seller financing, many good families would not be able to own a home.  Even the government has recognized the importance of  seller financing by allowing the use of the First Time Home Buyer Credit on seller financed properties.

The mortgage meltdown that we have experienced over the past two years is not from seller-financing.  It is from within the mortgage industry.   Don’t punish real estate investors and innocent home buyers by imposing these strict requirements that should be reserved for the mortgage industry.

Please change these Proposed Rules to allow property owners to offer seller financing without having to obtain a license, whether they have lived in the property or not.

* * * * * * * * * *

My friends and fellow investors, don’t delay!   Follow the detailed instructions in the post below and go to www.regulations.gov and let your voice be heard.  Today is the last day.   Take 10 minutes and do it now!

Thanks for taking a united stand.  Have a wonderful day.

—Donna

*Only 3 Days Left to Stop HUD from Destroying Seller Financing! Act Now!

Friends—

The deadline has been extended!   See my post on Feb 16th, HUD Extends Deadline to March 5th for up-to-date details!

My friends and fellow real estate investors,

We have ONLY 3 DAYS to stop HUD from eliminating ALL seller financing unless the seller has lived in the home or becomes a licensed mortgage originator.

That means that you would need a license to sell your properties with Seller Financing (other than your own home)!    This could have a drastic effect on most every real estate investor—whether you want to buy or sell properties, or buy or sell notes—-and think of how many potential home buyers won’t be able to buy!

HUD is requesting comments, but the deadline is February 16, 2010. Please take a few minutes NOW and voice your opinion online.   Here’s how:

1)      Go to www.regulations.gov .

2)      Use the Document Type drop down box to select “PROPOSED RULES”;  under Keyword, enter “SAFE MORTGAGE”; press “SEARCH.”

3)      Under results, find “FR-5271-P-01 Safe Mortgage Licensing Act: HUD Responsibilities…”   (It will probably be the first result.)

4)      Select “SUBMIT YOUR COMMENT” and voice your opinion before Tuesday, February 16^th to stop HUD from taking yet another hit on our businesses!  See below for suggested comments.

Notes:

TO READ THE PROPOSED RULES in detail (not recommended—they are very lengthy and cumbersome),  just click on “FR-5271-P-01 Safe Mortgage Licensing Act: HUD Responsibilities…”

For your convenience, I’ve written up a brief summary below.

TO VIEW OTHER PEOPLE’S COMMENTS, click on “Open Document Folder” in the far right hand column.

WHAT SHOULD YOU SAY?

Be polite and to the point.  Basically, you want to request that the definitions in the Proposed Rules be changed to allow private individuals to originate and service loans on properties they personally own whether or not they live in the property and whether they hold title in their own name or another entity (such as an LLC, corporation or trust). Let them know how devastating this will be to you and to the industry.   Here are some ideas:

• Seller financing is an “age old” tradition based on the principle that all owners should have the right to sell their property.
• Seller financing is sometimes the only way a person can sell their property.
• Seller financing is sometimes the only way a person can BUY a property.
• Many people do not qualify for bank loans under today’s strict guidelines.
• Bank loans are not even available on certain types of properties.
• The proposed rules would prohibit even partial seller financing  such as a second mortgage.
• According to HUD’s “Residential Finance Survey” in 2001, roughly 40% of all non-farm residential properties in the US are owned free and clear, and are therefore perfect candidates for Seller Financing.
• Many innocent people could suffer financial devastation if they were prohibited from using seller-financing to quickly sell their properties if necessary:
  • An estimated 6 million Americans own a property other than their own primary residence.
  • An estimated 4.5% of Americans own three or more properties, many purchased solely as investment properties.
  • 40% of non-owner occupied residences are mobile homes which are more difficult to sell with bank financing.
  • Approximately 5% of homes in US are for sale or for lease;  seller financing may be key to liquidating this inventory.

SUMMARY OF THE PROPOSED RULES:

The Proposed Rules are very long and cumbersome.  Below is a list of the loosely interpreted key points that most real estate investors and note buyers may be interested in knowing.   I must add this disclaimer:   I AM NOT AN ATTORNEY.  Do NOT use this synopsis to determine if you are in compliance or not.  If you are engaged in originating or modifying loans, consult your own attorney for a legal interpretation of these rules for your particular situation.

1.   What is this?

The Secure and Fair Enforcement Mortgage Licensing Act of 2008 (SAFE Act) was enacted into law on July 30, 2008 as part of the Housing and Economic Recovery Act of 2008.   If individual states fail to enact their own laws to meet the minimum requirements of the SAFE Act, then these HUD Proposed Rules will govern licensing loan originators in those states

2. Who does it apply to?

The Proposed Rules require that anyone who is originating and/or modifying residential loans must obtain a license, except for:

• Individuals who carry back a mortgage secured by a property that served as their own residence (You would need a license to offer seller financing when wholesaling a property or selling one of your rentals!)

• An individual who is negotiating terms of a loan on behalf of a family member
• A licensed real estate broker
• An attorney (with restrictions)
• A bank
• Someone only extending credit for timeshare plans
• A clerical person or underwriter operating under the direction of an individual who is properly licensed under the Proposed Rules
• An employee of a bank who is registered with and maintains a unique identifier through the Nationwide Mortgage Licensing System and Registry

3. What do I need to do to get licensed?

Obtaining a license under the Proposed Rules involves:

• A background check; credit report; finger printing; administrative, civil, or criminal findings by any governmental institution
• No felony convictions within preceding 7 years, some felony convictions prohibited completely
• 20 hours of approved education
• Pass a written test
• Submit Mortgage Call reports detailing your lending activity
• Be under the authority of a State Loan Originator Supervisory Authority

This is an absolutely urgent request.   These Proposed Rules will have a devastating impact across the board on real estate investors, note buyers, and potential homeowners.   Please act now!   Only 3 days left to have your voice heard.

It’s just another example of the government sticking their nose where it doesn’t belong.   These people don’t have a clue as to the terrible repercussions that this will have.   It’s up to us to tell them!  SPEAK UP NOW  and urge your friends and associates to do the same!  Invite them to “donnabauer.wordpress.com.”

Stay informed by subscribing to my free blog and watching my live streaming video presentations.  Go to www.thenotebuyer.com for more information.

Best regards,

Donna