HUD regulations May severely restrict seller financing

I just received this notification of proposed rule making by HUD that would  Severely restrict the ability of sellers to offer seller financing.  The apparent justification is a limitation on events that might threaten the banking system.  If you ever buy a home where seller financing may be necessary, a Fixer or other, you need to read the regulation and comment immediately.
I have posted a comment.  Unfortunately the deadline is 2/16/10.  I will post additional info if I get it.
John Parker
 This is the web site to leave a comment for HUD
 http://www.regulations.gov/search/Regs/home.html#submitComment?R=0900006480a6b033

Date: 2.14.10
From: Steve Zehala, Columbus REIA Exec Director, Entrepreneur
Re: Onerous HUD proposal to Take more of our rights AKA "FR-5271-P-01
Safe Mortgage Licensing Act"

If you own Real Estate or even aspire to this could change things for
the worse.....forever. Even if you don't own real estate please help
us. Your industry could be next! We must stand together to stop the
insanity in Washington!
URGENT CALL TO ACTION:
HUD tries to Outlaw Owner Financing for Landlords!!!
The following information is extremely important!
HUD Issues Dramatic Anti-Landlord Rules Interpreting SAFE Mortgage
Licensing ACT
HUD has proposed to eliminate ALL seller financing unless the seller
lives in the home or becomes a licensed mortgage originator. The
proposed HUD Rules interpreting the federal SAFE mortgage act can be
viewed at www.regulations.gov & use the search parameter "HUD" and
the keyword "safe" OR Use this link:
HUD Safe Mortgage Act

For those of you who would rather poke your eyeballs out than read
this here is the problem in a nutshell: "HUD's proposed rules in
Section II F mention the sales of owner occupied residences as an
exception to their proposed licensing law; however, there is no
exception mentioned for non-owner occupied residential property. This
would make it illegal to sell any non owner occupied property that you
have With owner Financing, Land Contract, and maybe even Lease
Options!

So any of you out there who own rental property, inherit property or
want to sell any kind of property that you don't live in cannot do it
unless you get a mortgage license. YES YOU READ THAT RIGHT, YOU WILL
NEED A LICENSE TO SELL YOUR OWN PROPERTY! What's next a license to
breath?

This is not a false alarm! We have researched and vetted this
regulation in detail and have had our law staff investigate it well
and they they have confirmed just how bad this regulation is. Please
confirm this for yourself, google "FR-5271-P-01 Safe Mortgage
Licensing Act" and you can see the alarm has been sounded.

History:
Also, as you may recall, Investors's around the country lobbied hard
last year to maintain the right for individuals to make up to five
seller financed transactions per year before being subject to mortgage
originator licensing, etc... However, LIKE EVERYONE IN WASHINGTON
THEY ARE IGNORING US SO WE MUST SHOUT LOUDER. In a nutshell, seller
financing would no longer be allowed for non-owner occupied homes.
Ouch!

How YOU can help:
We Just learned about the publishing of the rules very late in the
process... and the deadline for comment is upon us on February 16, as
usual they did this last minute to plow it through. So we desperately
need for as many citizens who don't want to lose their right to sell
their own property across the country to go on record with HUD on this
issue. We will be working to try to affect this law in other
legislative ways, but cannot hope to gain traction unless our members
have clearly communicated that they are opposed to this portion of the
rules. This is your chance to be counted on this issue. IF IT PASSES I
MIGHT TAKE A CONSTITUTIONAL CHALLENGE TO BEAT IT WHICH COULD TAKE
YEARS!

STEP-1 PLEASE SUBMIT YOUR COMMENTS TO HUD AGAINST THIS & TO STOP
THIS! We have less than 2 DAYS to flood this system to try stop this!
Thank GOD for email!

Follow these simple steps:
1. Go to HUD Safe Mortgage Act
2. On the right of the screen, click on "submit comment".
3. Complete the form providing required information and VOICE your
comments and then submit.

But Steve, what should I 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. Some ideas from others:
* 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
STEP-2 Forward this to everyone you can! Ask them to help. We have
power in numbers!

STEP-3 Contact your Federal Legislators and tell them to stop this!
Find them here:
Find your Senator Here
Find your Congressman Here (put the zip code in)

Email, Call, or Write them but remember we don't have much time! We
need to do it Now!

The continued success of Real Estate as we know it is threatened by
these proposed regulatory changes. Not to mention your property rights
are evaporating. Please do not hesitate to follow the steps above and
make your voice heard.

We Must Take Action or we will lose our Rights! Please help!

Thanks!


Steve Zehala
Exec Dir
1800PayCash.com | Expert Home Buyers Ltd.
Real Estate Investors Assoc of Columbus | Real Estate Investments
Offc: 614-258-1000 | Fax : 614-737-5304 | 458 N. Cassady Ave. Bexley
Oh 43209 (2nd Floor)