Mortgage Note Buyers and Sellers, Loan Servicing, and Hard Money Lenders

Trust Deed Investors – The Fair Mortgage Act Not so Fair for Owner Financing

The Note queen has wrote a great article about the NOT so Fair Mortgage Act that just recently passed through Congress.  The government has made it much more difficult for owner’s to sell their homes and offer financing.  That being said you will continue to see home owners and real estate investors to do business as usual but a close eye be on how the regulation is interpreted and enforced.  The way I see it, as well as many other real estate investors in Texas, is when a home owner offers owner financing to sell his or her property he will have to hire a licensed third party mortgage broker to mediate terms.  Meaning, my interpretation, that it will be illegal for the home buyer and seller to directly discuss, interest rate, term, down payment etc…  If they do then potentially a $25K fine cold be imposed.

That all being said and given the current market, I still believe that Owner Financing as a solution to move real estate will be more prevalent than it has been in the last 10 years.  Owner Financing will prevail in 2010 & 2011.  If you are considering it to sell your property you will still need a Note Professional to navigate the pitfalls of the contract process even with a government certified mortgage broker.

Check out the Note Queen’s article is it is right on point for this new legislation:

Do You Feel SAFE Now? The Fair Mortgage Act Not so Fair for Owner Financing

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