If this is true, it would be a disaster for buyers, sellers, homeowners, and investors. In an attempt to better regulate the mortgage industry, HUD has apparently decided that it is in America's best interest to eliminate the possibility of seller financing for individuals!
If you are as concerned about this proposed regulation as I am, you must make your concerns known BY TOMORROW! Here's how:
1. Logon to www.regulations.gov You will see two white boxes for searching
2. On the left box labeled "Document Type", pull the menu down and select "proposed rules"
3. On the right box labeled "Enter keyword or ID", enter "safe mortgage". Then, press search
4. Locate the blue search result "FR-5271-P-01 Safe Mortgage Licensing Act: HUD Responsibilities..."
To read the rules: click on the blue title FR-5271-P-01 You will be taken to another page. You will see "views". You can click on PDF file or another symbol which will show you the rule document online. If you want to submit a comment after reading the document, use your back button to return to the search results and then move on to #5 below.
5. To submit a comment: On the right of the screen, across from FR-5271-P-01, click on "submit a comment"
6. Complete the form providing required information with blue asterisks and your comments and then submit. (Note: you do not need to fill in the blanks for organization name, government agency type, or government agency)
Here's what I had to say in my comments to HUD:
Please do not limit the opportunity for a buyer of any house or property to negotiate a seller-financed mortgage! There is nothing wrong, immoral, illegal or inherently wrong with seller financing! this is a method that has been used by buyers for decades--particularly in periods where interest rates are very high. In today's economy, many sellers PREFER to carry a note, as it generates a steady and predictable income stream for them. This works especially well for senior homeowners who have owned their property for a long time, and do not want huge amounts of cash to worry about having to invest, or that would disqualify them from receiving Medicaid. Also, in this economy, it allows more houses to be bought and sold--rather than leading to foreclosure! It generally results in a quicker sale for motivated sellers, and more opportunity for a motivated buyer. So why in the world would anyone want to limit the ability of a willing buyer and a willing seller to use this time-honored system of acquiring and selling property?