Real Estate Investors Help STOP HR 1728

July 14, 2009 by
Filed under: HR 1728

If your your a Real Estate Investor please READ this and take action now. HR 1728 is a Disaster and is heading toward toe Senate.

I am not sure if you heard about this bill but it would take away the ability to do creative owner financing deals.

The US Lawmaker behind this property rights legislation is Rep. Bradley Miller Democrat-North Carolina. You can view the HR 1728 Bill at http://www.govtrack.us/congress/bill.xpd?bill=h111-1728

The bill also says you will not be able to sell more thank 1 property with owner financing every 3 years.

Their definition of Owner Financing includes owner held mortgage, wrap around and land contract. They could narrow this down to include lease options as well.

I really don’t think they understand that seller financing actually fills the void of conventional financing. I also will say the reason this country is in such a mortgage down turn has nothing to do with seller financing. Some people would not have a home today if it wasn’t for Seller Financing. So this is one thing we as investor’s should not have to give up.

The bottom line is, this law has to be stopped and it has to be stopped now.

1.) Congress is trying to regulate the wrong thing.
2.) It is completely unacceptable infringement on our private property rights.

Please contact your Senator via email, Fax or US Mail and let them know that this law must not pass in its current form.

Here in Ohio you would contact:

Sherrod Brown (D-OH)
Hart Senate Office Building
Washington, DC 20510
202-224-2315
http://brown.senate.gov/

George Voinovich (R-OH)
Hart Senate Office Building
Washington, DC 20510
202-224-3353
http://voinovich.senate.gov/public/

Sample Letter – Please Vote No on HR 1728

Dear Senator [name];

My name is Scott Gordon and I have been a resident of Ohio since 1996.

I am writing to encourage you to vote NO on HR 1728, the “Mortgage Reform and Anti-Predatory Lending Act”.

While many of the provisions of the act are positive steps toward mortgage reform, the inclusion of private property owners in the Act (see section 101(3)(e)) will enormously reduce the housing choices of Washingtonians and the ability of homeowners to sell properties in a market already languishing from an abundance of unsold properties.

As someone who buys and brokers owner financed notes, I encounter hundreds of instances every year where home sellers and buyers came to an agreement for an installment sale on a property that the owner desperately needed to sell (often to avoid foreclosure) and the buyer desperately wanted to buy, but could not raise the down payment needed for conventional financing.

In every situation, these sales were win-win deals for the buyer and seller: The seller was able to get rid of an unwanted property to a buyer who loved it, and the buyer was able to get a new home at an affordable payment and interest rate with none of the usual costs (points, application fees etc) inherent in conventional mortgage transactions.

In Ohio, these transactions are already regulated by state law. A low maximum interest rate is already in place, and both the buyer and seller are protected by other regulations at the state level.

In Silagra defense of private property rights, owners should be exempted from the burdensome and unnecessary rules that this law foists upon them. In its current form, it would all but shut off the “owner financing” market, which is often the only option for many sellers to sell and buyers to buy right now.

PLEASE DO NOT LET THIS RESTRICTION ON PRIVATE PROPERTY RIGHTS PASS THE SENATE. It is unnecessary to stop private buyers and sellers from transacting business that is beneficial to both of them – -they do not cause the problems this bill seeks to solve. They do not originate these notes to sell to government-sponsored entities (Fannie Mae, Freddie Mac, FHA, etc.), but instead hold them as investments, often as a source of long-term income. HR 1728 would be extremely harmful to thousands of your constituents if passed as currently worded.

This legislation will exacerbate the problem OF foreclosure, as fewer sellers will be able to sell their homes to avoid it, and CAUSED BY foreclosure, as fewer buyers who have recently experienced foreclosure will be able to re-start the process of home ownership inexpensively and easily by negotiating owner financing.

Thank you for your consideration.

Respectfully,

[Name and Contact Information]

SRG Property, LLC – We Buy Notes