Couldn't agree more! Here's an excellent summation of why the housing market, particularly the affordable housing market is in the sorrowful state it's in...I'm talking the housing market, in general and South Jersey real estate, in particular!
Imagine, Chris Dodd and Barney Frank, above and beyond all the usual suspects, attempting, with all their "big government can fix anything" rhetoric, to drive yet another bureaucratic nail into the regulatory coffin already suffocating the prospect for responsible home ownership!
Those elves in Washington are at it again. The Clueless Duo, Barney "Circus Clown" Frank and Chris "I do not have to pay back loans" Dodd have snuck key provisions into their bill. CALL YOUR REPRESENTATIVE TODAY!
In an incredible show of effective bank/mortgage lender lobbying or government ignorance the Federal Reserve is considering rules that may end a seller's ability to finance their own property and sell on terms to a buyer!
The problem is that the Federal Reserve has proposed new rules from implementing the Dodd Frank Act. Those rules would effectively eliminate seller financing! If you believe that seller financing is important to this real estate market, we need you to let them know that you don't want these rules enacted. The comment is this Friday, July 22nd, 2011.
It is incredible that in an environment where mortgage financing is hard to get and the real estate market is hampered by problems many have getting loans, that the government is set to essentially outlaw seller financing.
My guess is that mortgage companies and banks are lobbying to prevent seller financing so they have the market all to themselves and can charge whatever interest rates they want and impose any terms they want. The numbers of creative financing deals such as lease-options, seller financing, options and other creative financing deals are increasing so sellers can get properties sold. This is a natural outgrowth of difficulty in finding buyers who can get a conventional mortgage.
Sellers need to sell, buyers want to buy and in many cases the banks and mortgage companies stand in the way because they are so strict with lending criteria including high down payment requirements high credit score requirements.
There are many people who have blemished credit because of the economic downturn - even foreclosures and short sales but who are good qualified owners but are locked out of the housing market unless they can get non-traditional financing.
Our over-zealous government is now proposing that it completely control seller financing in this country and the rules are so convoluted (179 pages) that most sellers will be too scared to offer seller financing. It is such a bad idea to eliminate a way to sell houses and get buyers financing at a time in our history when sellers need to sell and buyers want to buy and the residential real estate market has been hampered by financing issues to eliminate an alternative.
The problem is that the rules were made for traditional lenders to follow but the problem is that If these rules are passed without an exemption for seller financing, an individual who wants to sell their own home will be required to understand and comply with 169 pages of rules with draconian penalties for non-compliance that could bankrupt a seller.