The truth on House Bill 1728
I've received a number of emails from people claiming that House Bill 1728 will eliminate owner financed deals to once every 36 months.
This is patently FALSE.
Become an informed citizen and read it yourself:
This bill aims to include owner financed deals within the definition of "Truth in Lending" law. I've always instructed that you should comply with Truth in Lending, which requires just a few simple disclosures.
The bill also would, in theory, make a person who sells a home a "mortgage originator". This would require compliance with RESPA, which I've always instructed that you should comply with anyway.
Finally, the bill would require that you actually qualify your buyer. It prohibits, "lending without due regard of the mortgagor's ability to repay". Duh! Only a fool would put someone in an owner financed house deal without checking their income, debt and credit.
All in all, there's nothing to worry about here for investors, it's just a matter of compliance with some federal rules and a couple of disclosures.
Any comments or questions are welcome.
Your partner in success,
Bill Bronchick, Esq.
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"