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DODD FRANK FOR TODAY’s INVESTOR
by attorney Harry Borders
PART TWO- RESTRICTIONS ON OWNER FINANCING!!!
Here’s the GOOD NEWS… Investor buyers can STILL get financing from any source they want.
Here’s the TERRIBLE news… Owner occupant buyers now have lots of restrictions place on who they can get a loan from.
These new rules impact “contract for deeds” and “Land Contracts” as well as seller retained mortgages (and, of course, the ever present contract for deed in disguise as a lease-option) and private financing.
So, assuming an owner occupant wants to obtain a loan from a source other than a bank or mortgage company, here are the new rules.
If the lender only lends once in a 12 month period, the lender:
a) MUST be a “natural” person (i.e. not an LLC or corporation);
b) MUST have owned the property (i.e. no private financing, only owner financing);
c) MUST NOT have built the home in the ordinary course of his/her business;
d) MUST NOT have a negative amortization;
e) MUST be for at least 5 years, and if longer and adjustable, must be tied to an index rate, such as Libor
If the lender lends 2 to 3 times in a 12 month period, the lender MAY be an LLC or corporation. But the lender also:
a) MUST have owned the property (i.e. no private financing, only owner financing);
b) MUST NOT have built the home in the ordinary course of his/her business;
c) MUST NOT have a negative amortization;
d) MUST be FULLY AMORTIZED;
e) if the rate is adjustable, it must be fixed for at least 5 years, and it must be tied to an index rate, such as Libor; and
f) MUST determine in good faith that the consumer has a reasonable ability to repay the loan (similar to what a loan officer would do).
If the lender lends more than 3 times in a 12 month period,
all of the above requirements for a lender lending 2 to 3 times in a 12 month period apply and
IN ADDITION, the lender MUST BE A LICENSED LOAN OFFICER.
As you can see, navigating the waters of seller financing has again become tricky.
Please check with your real estate attorney before embarking on a seller financing transaction for a dwelling.
Until next time, peace,
P.S. Your simple solution to stay out of trouble is to never offer seller financing to any tenant / buyer or owner occupant. You can use Seller Financing to sell to other Investors, not owner occupants.
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Good evening! while watching this Louisville vs. Notre Dame basketball
overtime bonanza. 5th Overtime… wow and i checked my email real quick and got this…
I was skeptical at first, but this is absolutely true. One of my friends sent me this link to Adobe and I just downloaded a boatload of Adobe Products without paying one red cent.
Plus I got the product key codes, (serial numbers) for each software
Here is the Link, click on it now. It is an Adobe webpage
http://www.adobe.com/downloads/cs2_downloads/index.html <– Click Here
(copy and paste in browser)
Now I’ll be 100% transparent and say this…
I’m not sure if they (Adobe) meant for everyone to be able to download these products from their page, or just SOME people (like people who already bought a copy)…
.. but the page IS still up, and I’m sure 1,000’s of people are visiting that page every week and downloading their CS2 versions.
Adobe MIGHT be doing this to fight all the pirated copies of Photoshop on the market… it might be their way to introduce more people to Photoshop via an older but legal version (CS2)… and perhaps these people will later upgrade to CS5 or CS6.
I can’t say for sure if that page is for everyone or not, but that page IS still up at this link:
You might want to look into this yourself a little more… I’m just passing on the news I heard since so many people on my list don’t have Photoshop or these other programs.
Yes, these are older versions, but they still do about 90% of the newer versions.
Forward this to your friends while the getting is good.
UPDATE Provided by GOLD Member Andrew Teustch (Chicago)
“Adobe has disabled the activation server for CS2 products, including
Acrobat 7, because of a technical issue. These products were released
more than seven years ago, do not run on many modern operating
systems, and are no longer supported.
Adobe strongly advises against running unsupported and outdated
software. The serial numbers below should only be used by customers
who legitimately purchased CS2 or Acrobat 7 and need to maintain their
current use of these products”