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Weekly Training Recap: Contract For Deeds

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Last night we covered an old Seller Financing Strategy that is making a comeback in a big way. Contract for Deeds / Seller Financing used to be very popular back in the 1980’s and 1990’s. They went away in the early 2000’s when it became easier and cheaper to get a loan to buy a house than it was to rent a place. So Seller Financing wasn’t necessary over the last several years. But that is changing.

With the credit requirements and down payments needed to buy in today’s market, Seller financing will become the most popular choice of buyers and real estate investors in the near future. Another industry that went by the wayside in the early 2000’s is the Note Buying industry. A lot of Note Buyers were buying Contract for Deeds and other Seller Financing instruments (Paper). I believe that this business will make a comeback as well over the next few years.

REP Premium Members can watch the replay of last night’s training call at: https://www.realestatepromo.com/MyAccount/WeeklyTraining/2009-11-30/Default.aspx



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Mike Jacka2/23/2010

mikej@realestatepromo.comHUD has proposed to eliminate ALL seller financing unless the seller lives in the home or becomes a licensed mortgage originator. The proposed HUD Rules interpreting the federal SAFE mortgage act can be viewed at http://www.regulations.gov/search/Regs/home.html#home Use the search parameter "HUD" and the keyword “safe”.... Please review and comment regarding the impact of this broad interpretation of the law. “In addition to establishing HUD’s responsibilities under the SAFE Act, through this rule, HUD proposes to clarify or interpret certain statutory provisions that pertain to the scope of the SAFE Act licensing requirements, and other requirements that pertain to the implementation, oversight, and enforcement responsibilities of the States. HUD solicits comment on the proposed clarifications and on the regulations proposed to be codified."

Paul Tomlinson2/22/2010

pauly999@gmail.comSeller financing is still alive and well as I'm doing a land contract with an out of state property. I've heard that there may be new legislation in the works to make seller financing more difficult. My guess is that where investors stand to make profits or there is the possibility of fraud, someone in government froths at the mouth to write a bill.


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