HUD proposes to eliminate ALL seller financing unless


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We have received this from several sources: HUD proposes to eliminate ALL seller financing unless the seller lives in the home or becomes a licensed mortgage originator

The situation: In the federal SAFE mortgage act passed last year, we were successful in preserving the right for individuals to make up to five seller financed transactions per year before being subject to mortgage originator licensing.  HOWEVER, that law was passed subject to HUD’s approval of the law as "compliant" with the intention of the federal law.  This means that, for those states which do not have a ‘compliant law’, the SAFE act allows HUD to implement licensing for the state.  HUD has since issued proposed rules in which, in a nutshell, seller financing would no longer be allowed for non-owner occupied homes.

HUD is soliciting comments on these proposed rules. The Deadline for filing Comments is FEBRUARY 16 !

We need YOUR help:  We desperately need for YOU to go on record with HUD on this issue. Industry efforts to affect this law cannot hope to gain traction unless thousands of individual investors have clearly communicated that they are opposed to this portion of the rules. It is very important that you stand up and be counted on this issue.

Please submit your comments to HUD – Today ! WE ONLY HAVE Three DAYS TO MAKE AN IMPACT !
 
To read the proposed rules, go here – http://www.regulations.gov/search/Regs/home.html#documentDetail?R=0900006480a6b033

To file your comment, go here – http://www.regulations.gov/search/Regs/home.html#submitComment?R=0900006480a6b033
and fill out the form.

What should 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 private individuals can originate and service loans on properties they personally own.  Here are some ideas suggested by others for points you might want to make:

· bank loans are not available on some types of properties
· the tight lending climate has made bank financing "out of reach" for many
· seller financing is an "age old" tradition based on private property rights
· these rules would prohibit even partial seller financing – i.e. a "seller second"
· 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
· 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
 

Please do not delay in following the steps above and make your voice heard.

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