Thanks, Todd----I was not aware of this bill that has been introduced. This is important information for all of us. Thanks, Todd.
OK, I’ve been working on this for a couple days and Owner Financing is something that is needed and I think it can be a great tool for sellers. But Representative Brad Miller (D) of North Carolina introduced a bill HR 1728 that basically makes it so the average home owner can’t sell their home on owner financing any more than once every three years. Here is a link to read the bill and see its present status HR 1728.
Here is what I see presently. I work with a lot of people that are upside down in their homes because of the current market. Owner financing is a way they can sell their home and potentially keep themselves from getting a foreclosure on their credit, or if they have equity, a way to make money like the banks do, and to give people a chance to buy that normally can’t through the normal channels because of situations like mine. I make my money from commissions. I would require a stated income loan. I could make one million this year and next year make ten dollars. Banks don’t like that when they are lending you close to a half million dollars.
I have met many people that have bought and sold many homes on owner financing. It is a choice. Unlike the banks, it is a risk. If the buyer defaults, they may get back a damaged home and they aren’t going to be bailed out. But, if the sale goes well, they can make an additional $100,000 - $200,000 on the sale of their home, if it goes the full 30 years. The bill is trying to stop predatory lending, but is it really? Most of these people that I know are just trying to get in to a home. They have the down, but don’t like to deal with a bank for whatever reason. They understand what interest they are paying, they also know that they can claim that on their taxes, so are they really losing?
But, here is why this scares me and it isn’t because I will lose business, because more than likely I won’t. It will just shift, as the market always will. Sellers will find a way to sell their home. You see the real reason this scares me is because the government is once again setting up another law that is telling private citizens that they can’t sell their home as they see fit, they have to use a third party. (Banks) Now, on the surface they say this is to protect buyers, but is it really just another way to protect banks, that are now government owned.
The government is getting into your lives more and more each day as they pass more and more laws to regulate what you can and can’t do. Each one is slowly taking away your freedoms, your civil rights. You think they will stop at this one, and even though I am a real estate agent and this could benefit me, what do you think the next step is? Could they outlaw people from selling FSBO? (For Sale by Owner) I think they certainly could propose this next, and even if I believe it will put money in my pocket, I disagree with it 100%. I think people need to have the right and the ability to sell their home on their own, if they choose to.The government is slowly taking away your civil liberties, one by one, and getting into private business. Every time the government takes over another business and says it is for the good of the country, we are once step closer to the government not allowing private business to even exist in this country. Over the past 20 years, country after country has disappeared that once had their systems set up that way. What makes you think our government could run it any different? We are not too large of a country to fall, Rome thought they were safe and look what happened.
Some people believe the government should run businesses. But ask yourself this, what is the one thing that government has ever had their hands in that was able to run smoother and more efficiently than the private sector has? I’ll give you a hint… the answer is NOTHING! If you said the military, I will have to correct you and remind you in the 1700 our PRIVATE military overran the English governments arm with 1/10th the man power of the English.
So, don’t forget that our country is still free and every time you vote to have one person’s liberties or choice taken away, you are one step closer to them taking yours.
Todd Clark - Broker / Sales Coach
Palazzo Realty Group
Phone: (503)524-9494
Fax: (503)622-8739
©2009 Todd Clark - As someone who specializes in Owner Financing and Lease Options, I’m SCARED!
Fear and panic come to mind anytime the Government is trying to make a decision. Usually it turns out bad for most of us.
JL --- you are so right.
Liz - I think this needed more traction as I read this earlier. We have a few wing nuts up here that like to hear themselves speak. Good topic to reblog
Claude ---- Obviously, I agree with you. Thanks for your comments.
I talked to Todd about this the other day and we need to fight this. I came from a communist country and I'm afraid your country is well on its way to taking away your freedom, you may not think it, but I've seen it and this is how it starts one liberty at a time!
Liz,
I personally carried the mortgage on a home I owned. It worked out well.