The truth on House Bill 1787

[ Follow Ups ] [ Post Followup ] [ CREOnline News Group ]

Posted by William Bronchick on June 08, 2009 at 13:41:48:

I've received a number of emails from people claiming that House Bill 1787 will eliminate owner financed deals to once every 36 months.

This is patently FALSE.

Become an informed citizen and read it yourself:

http://www.govtrack.us/congress/bill.xpd?bill=h111-1728

This bill aims to include owner financed deals within the definition of "Truth in Lending" law. I've always instructed in my courses and seminars 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 in my courses and seminars 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.
bronchick@legalwiz.com

Follow Ups:


Post a Followup

Name    : 
E-Mail  : 
Subject : 

Comments:

[ Follow Ups ] [ Post Followup ] [ CREOnline News Group ]

CRE Online, Inc. © 2007, All Rights Reserved.
creonline.com