Seller Financing Safe for Now
June 25, 2010 
7 Comments
I admit the legislative battle over seller financing had me 
scared for the real estate investors who are seller financing residential properties.
The House initially proposed that only licensed mortgage originators should be allowed to do seller financing transactions OR be limited to one transaction every 3 years.
On June 23rd, the sponsors of that bill have agreed to increase it to 3 seller financed transactions per year without a license. Not a huge win but a win nonetheless.
From the Wall Street Journal…
The House-passed version of the bill would have required people to register as mortgage originators if, more than once over a three-year period, they finance a sale of property they own. The provision was written into the bill out of concern that unscrupulous businesses would try to get around new tough lending rules by financing real estate transactions themselves.
But this week, Sen. Christopher Dodd (D., Conn.) and Rep. Barney Frank (D., Mass.), who are the lead House and Senate negotiators working to finish the financial-overhaul legislation, agreed to relax the limitation on seller financing to three properties in one year.
Now let’s just hope the Senate doesn’t screw it up!
being limited to one transaction every 3 years just seemed too strange an idea that made no sense
Is this nationwide?
Yep.
I have heard that this would not include “contract for deed” transactions. Any comments on that?
I have not heard that. I’d be safe and include them personally.
I’m glad I found this post. I was JUST thinking about what the conclusion of this problem was — so it’s still set on 3 per year — changes since June?