stustanton

OMG! I am officially red faced here. I completely missed that (my new reading glasses arrive Tuesday, for real). Plus I just got an notification from my seller financing loan servicer friend explaining the same steps above. People, if you read this far then take the next step and comment! Stu

Umm, I looked twice and I believe I have the correct article "FR–5271–P–01 SAFE Mortgage Licensing Act: HUD Responsibilities Under the SAFE Act" and section F states specifically that seller financing is exempt from regulation. Section F ...The commercial context implied by the taking of an ``application'' is also absent where an individual seller provides financing to a buyer pursuant to the sale of the seller's own residence. The frequency with which a particular seller provides financing is so limited that HUD's view is that Congress did not intend to require such sellers to obtain loan originator licenses. Accordingly, this rule would provide in Sec. 3400.103(e)(5) that such individuals are not subject to State licensing requirements..... This is the only paragraph that talks about seller financing. What am I missing? Stu Stanton My Facebook page

(Michael, enjoyed talking to you over on facebook) Jonathon is correct, you are looking at an opinion of an attorney that represents the Real Estate Commission. Look beyond his comments. I am very familiar with this action. The NC Bill 725 in session 2005-2006 was primarily designed to prevent investors from doing anything in NC without a license, including seminars. It has been, since 2005, sitting in the judiciary committee, not passed. It probably will stay there since many of its' provisions were in direct violation of federal law and possibly constitutional law. Most of what this attorney was talking about was in reference to this bill that was never passed. We have several members of our network in NC doing land trust type transactions without any issues. You should seek legal advice from an NC real estate attorney that is not affiliated with the NC RE commission to get an unbiased opinion. I could write a book on this action that took place from 2004 to 2005, but, the bottom line is the state did nothing to change the current status of the investor, but they are aware and do scrutinize transactions brought to their attention. If you use a land trust method, make sure it is bullet proof. In my opinion only, for what that is worth, as I understand your CA, if you do it properly, as designed, so that neither the seller nor tenant buyer have anything to complain about that is not in writing (you know someone will complain), you should be fine. Stu Stanton Specialist in the "Equity Holding Trust" method

DRK, You will be faced with one problem. Most lenders I know and work with will require 12 months seasoning before you can refi. We set up our trust for a minimum of 12 months just for that reason. Now, your sub-prime buyer may still be able to get financing, just has to be a new purchase loan, stricter credit requirements (ans seasoning may still be an issue). If I may be so bold, you may be able to cut out the middle person. I have a program where our private investors will purchase the home from you and owner finance it to you end (subprime) buyer. The mortgage company, I work for, can do your loans, both the credit loan (up to 100%LTV NOO) and the subprime financing, though a 100% financing may be tricky. Let me know, Stu Stanton www.stantonloans.com For private investor loans call: (406) 285-3717 (office 9-6 MST) (877) 841-8412 (message and fax)