If you’ve read my blog for any period of time, you know I’m not a fan of the Obama administration. And their latest attack on the rights of small real estate investors – like YOU and ME – does nothing to change my opinion. I’m going to tell you what has happened, and I’m also going to tell you what you can do about it, because it’s not too late to turn it around. This is critically important – please read the whole post – it’s truly urgent.
Here’s what’s going on:
Obama’s team at the Department of Housing and Urban Development (HUD) has proposed new regulations that will eliminate YOUR RIGHT to sell your properties via owner financing. The only exception to this is if you RESIDE in the property that you want to finance, or if you are a licensed mortgage originator.
The net effect is that those of you who rely on any type of seller financing in your real estate business will be OUT OF BUSINESS. That’s right: the classic investor business strategy of acquiring property and reselling it via owner financing will become ILLEGAL. Obama’s team will have made you a criminal for using a strategy that is fundamentally wise and is a positive opportunity for every party that’s involved.
This will also instantly destroy the businesses of many real estate investors whose entire business is based around the idea of buying seller-financed real estate notes. If these new regulation proposals are approved, this business model will die instantly.
I’ll spare you the details of why I think that Obama’s team is trying to illegalize a well-established strategy that has been used by real estate investors and their buyers for hundreds of years. But this is a very important point:
As of this moment, these proposed regulations are not the law, they are merely proposed regulations. With immediate action, it’s not too late to turn this very bad regulation backwards before it is enacted.
Real estate lawyer Bill Bronchick recommends these steps:
—–
How YOU can help:
We desperately need for thousands of real estate investors across the country to go on record with HUD on this issue.
PLEASE SUBMIT YOUR COMMENTS TO HUD! We have less than one week to flood this system with comments.
Follow these simple steps:
- Logon to http://www.regulations.gov. You will see two white boxes for searching
- On the left box labeled “Document Type”, pull the menu down and select “proposed rules”
- On the right box labeled “Enter keyword or ID”, enter “safe mortgage”. Then, press search
- Locate the blue search result “FR-5271-P-01 Safe Mortgage Licensing Act: HUD Responsibilities Under ….” To read the rules, click on this title. 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.
- On the right of the screen, click on “submit comment”
- Complete the form providing required information and your comments and then submit
What do 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.
Make your voice heard!
Bill Bronchick, Esq.
—–
Please follow these steps and enter your comments on the government website right away. It’s imperative that thousands of real estate investors resist this foolish intrusion into our rights as private property owners. Please take just a few minutes right now to protect your own ability to use owner financing in your real estate business.
Obama’s team at HUD clearly want to take your rights, but you don’t have to sit still and take it. Respond now.
Thank you for reading http://realestate.BryanEllis.com.
My comments on this inane regulation have just been submitted. Might I expand on Bill’s comments in saying that each State’s regulations have been adequate up to this point and that individuals and companies selling their own properties should be exempt. The litmus test realtors’ license requirements should apply here as well.
It would seem logical to refer your buyer to a mortgage broker to negotiate your financing on your terms but that looks to be prohibited as well. The only loopholes that I found was to have an attorney negotiate for you as long as this isn’t the only tasks he performs for you and that you could have an immediate family member negotiate for you (did I read that right?) So I could have my wife or brother negotiate the term of sale of my property without a license for me but I cannot negotiate for myself? That defies logic.
I followed the above directions verbatim but my comments will not submit. It says that I need to correct the errors listed below….no errors are listed.
I did the process three times. Anyone else having the same problem?
I can not object too strongly to this proposal. This rule would violate the most basic property rights we have – the right to sell my own property when and how I want. This rule is only meant to benefit the banking industry, by requiring everyone to do business with a bank when either selling or buying a property. This is outrageous!
This proposal is so wrong on so many fronts. How dare the government force me to deal only with banks if I want to sell or buy a house! My house is my own property…how dare any business (or government) tell me how I can sell my house!
Submitted my comments too!
It is very crucial to stay on top of such upcoming issues in our real estate investing business. I probably won’t know about it unless I heard from you. Thanks a lot Bryan!
Property rights have been under assault in this Nation for a long time.
In my town alone the local government threw 5 or 6 homeowners out of their homes so that a large Wal-Mart Super Store could be built. I have nothing against Wal Mart, but the fact that local governments can evict a longtime homeowner for a higher tax payer on that property is wrong.
Property rights must remain sacred. Otherwise we slip into Socialism, which ALWAYS morphs into COMMUNISM
dnerls
I see some problems with this that need fixing. But again you want to blame everything on Obama. This was originally passed in the summer of 2008. Since the GOP has filibustered everything the Dem’s have done from the time they gained majority, this must have either been a GOP bill or had a lot of GOP support.
For those who want to scream Socialism at every opportunity, if you paid a little more attention to what is going on in the world, you would find that we have had Socialism for the rich and cut throat capitalism for everyone else for a long time.
I cannot thank you enough for bringing my attention to this outrage! I have registered my displeasure with HUD as you suggested, and can only hope that a sufficient number of others did the same. PLEASE keep us informed of the future of this proposed regulation, I hardly expect it to be reported in the government controlled press.
Re: the prior post of our slipping into socialism. Sadly we have been for a long time slowly and discretely, until Obama and the Chicago mafia machine moved in. We are all going to have to study our rights, get our heads out of our —, and take our country back, it will be tough sledding, but it was for our forefathers as well. Let’s do it for the good of our country, our kids, and grand kids.
To cbscout,
If this was from 2008 then it was a democratically controlled congress. Obama is a Marxist, all of his mentors are Marxist and half of his attempted appointments are blatant Marxist and the rest Progressives. Get a clue, his administration is the most dangerous one we have ever had in this country. This is not opinion, just do some research about what Obama has said, the people around him have said and who he and his wife hold up as their guiding lights!
Free Market is what the rest of the world is trying to get to and Obama and his thugs are working as hard as they can to take it away from us and make us all slaves of him and his few buddies.
Is that plain enough for you?!
HUD is working at completing a very unconstitutional action here. Thank you Bryan for the alert, this is the second place I have read about this so it is getting out there. We just need to get more out there and let them know how criminal an action this is and we will not stand for it as Free American Citizens!
We need to take property rights back from the governments across the country and once again place them where they belong with the people.
These are my comments to our current administration.
This proposal will instantly destroy the businesses of many real estate investors around the country, whose entire business is based around the idea of buying seller-financed real estate notes. If these new regulation proposals are approved, this business model will die instantly. This type of Real Estate financing has been around for decades, and most probably for hundreds of years, where the Obama Administration is not stating, or providing a legitimate reason on why they are attempting to remove/delete such an article of Real Estate that has not only benefitted the Home Owner, Buyer, bank, and the person who put it all together, the Real Estate Investor. This like other Real Estate techniques has revitalized the US economy thru good, and thru major difficult times in our country, and this administration wants’ to shut it down.
I thank you for your consideration in this manner, and respectfully request that the voices of Current, and future RE Investors be heard, so that this proposal is Stopped.
This is just another government intervention in to the free market. Investors and potential purchasers will be gravely damaged if this becomes law. I urge all to raise your voice before this takes place. As an owner of over 50 properties this would only serve as motivation to become one of the unemployed. Why should I take a risk if the government will penalize me for making an investment. I guess we the tax payers are willing to sit on all of the distressed real estate that will stay on the market. The investor is the only way to solve this problem
The link to this is http://www.regulations.gov/search/Regs/contentStreamer?objectId=0900006480aa26a1&disposition=attachment&contentType=xml
The federal government is now in the act of denying basic rights to its citizens! I suggest this rule is unconstitutional on three grounds:
1. It denies rights to title. A fundamental right to title is the disposition of one’s property. Even if a person or entity owns more than one property a long understood right of title has been that it may contract sale and purchase of that property. This right is denied to an owner after the sale of one property in a three year period.
2. It is discriminatory. Car owners may contract the sale and purchase of any or all of their vehicles regardless the last time they agreed to receive payments for a vehicle they owned. Enforcing this rule makes home owners an unfairly targeted class.
3. It is an unfair restraint of free trade. A person seeking to purchase a property is denied the right to buy a property for which he/she may qualify at less demanding requirements than a bank or institutional lender would impose. As a result of this rule many otherwise qualified buyers will be denied the right of property ownership.
Enforcing this rule becomes just another way of tightening the noose the banks have placed on the residents of this great nation. Denying the rights of its citizens bars them from assisting in the recovery of the disasterous financial policies that created it. This will only slow down the pace of recovery.
@admin: I just have to say your site is the first I’ve come across today that doesn’t have typos every other sentence. Thanks for taking the time to construct something that doesn’t look like a 5th grader wrote. Sorry, just had to vent.
Thank you for your kind words! Bryan Ellis