Wanted to pass this along. It was posted on the CTREIA website. I would suggest looking into your states since the contacts are specific to Connecticut.
CT REIA News
Protect You Property Rights Now
Contact your state representative and ask to have seller financing de-coupled from the following bills: HR4173 and the ‘Restoring American Financial Stability Act of 2010′.
There is currently one bill in Congress and a companion bill in the Senate that threaten the very fabric of American property rights. While there are many good benefits for the public included in these bills there are dangerous pitfalls as relates to the consumers this bill is intended to protect. Real estate investors nationwide are seeking assistance in de-coupling the individual taxpayer from this legislation that is intended for oversight of institutions, and we need your help to get the word out.
Don’t Judge A Book (Or A Bill) By Its Cover
The bills are HR 4173, the Wall Street Reform and Consumer Protection Act, and the Senate companion bill, the Restoring American Financial Stability Act of 2010. These sound great don’t they? Wall Street Reform, Consumer Protection and American Financial Stability are warm and fuzzy sounding names. You’ve probably heard the old adage, “you can’t tell a book by its cover,” right? Well, you can’t tell a piece of legislation by its name either. Both bills literally contain thousands of pages.
I had the opportunity to participate in National REIA’s 3rd Day On the Hill in Washington, D.C., where these bills were brought to my attention. This important event was sponsored by the National Real Estate Investors Association, who represents over 40,000 small businesses in 41 states. Of concern to both investors and average Americans is that we are all caught in one big net directed at mortgage regulation. You, me, your parents, your grandparents…everyone you know would, upon passage of this legislation, be required to become licensed mortgage lenders if we decide to sell any property we own with owner financing. Suddenly, if your parents own a property free and clear and decide to let you buy it from them with monthly payments, they would need to be licensed as a mortgage lender and you would have to qualify for the loan as you would with any other lender.
Many properties, such as condos, mobile homes or land, don’t qualify for bank financing but would now have to. Why? Because purchasing from individuals by using a privately held note would no longer be legal. After the tumultuous real estate market of the past few years, many of today’s buyers can’t qualify for a traditional mortgage and count on seller financing. This would no longer be an option for millions of potential homeowners.
Your Call To Action – Make A Difference!
Here is a sample letter:
I strongly encourage you to assure that no restriction of seller financing is inserted in S3217 or in any bill created in conference committees. This would have a negative impact upon the same consumers that the Anti-Predatory Lending legislation is supposed to be protecting. I am not opposed to the regulation of the mortgage industry as a whole, but only of private property owners who would seek to offer terms of sale of a property for monthly payments in exchange for equity.
Thank you for your time and attention to this matter.
Note: – use your own words and experience. In other words, say that you are a Realtor or mortgage broker, or investor, or you inherited a house that you need to sell or that you are a landlord and want to sell but your buyers cannot get bank financing or whatever situation is real for you.
Joe Courtney (D)
2 Courthouse Square, Fifth Floor
Norwich, CT 06360
Rosa Delauro (D)
John Larson (D)
Washington D.C. Office
1005 Longworth House Office Building
Washington, DC 20515
Fax: (202) 225-1031
Hartford, CT Office
221 Main Street, 2nd Floor
Hartford, CT 06106
Ph: (860) 278-8888
Fx: (860) 278-2111
Christopher Murphy (D)
1 Grove St.
New Britain, CT 06053
Jim Himes (D)
In CT Ph: (866) 453-0028