Many times real estate transactions are made using seller carry back financing in one form or another. Seller financing provides benefits to both the seller and to the buyer.
The seller benefits by getting his property sold, often much sooner than if he waited for the right conventional buyer to come along. He also usually gets much better interest rates than he would from a bank and with a note secure by a property he already knows.
The buyer avoids the hassle of dealing with banks and may also get favorable payments.
Congress, in its infinite wisdom wants to change that with HR 1728 which has already passed the House and is being fast tracked in the Senate.
If passed by the Senate, this legislation will:
1. Severely limit the number of property owners who can legally owner finance the sale of their properties.
2. Make violators out of everyday Americans who, unaware they are breaking the law, are merely trying to sell their properties and/or offering financing to prospective homeowners who cannot obtain conventional financing.
3. Require obscene amounts of due diligence on the part of note investors to make sure all facets of this legislation have been complied with.
4. Give prospective homeowners even fewer options to realize the American Dream of homeownership.
5. Cost the U.S. taxpayers over $400 million dollars to enforce.
Contact your Senators and tell them to oppose this bill.