HR 4173 - Another Round of Threats Aimed at Owner Financing and the Note Business
June 22nd, 2010 categories: Note Business, Seller Financing
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[watch video] Help protect your personal property rights: the ability to use owner financing to sell your property, the ability to buy a property without needing to qualify for new bank financing, your ability to defer capital gains and enjoy cash flow for retirement by carrying paper.
If HR 4173 goes through unamended, it will greatly harm the real estate industry and the private note business. Thank you, Eddie Speed, for sending around this email:
Dear Friend and Colleague:
With HR 4173 moving forward in conference, we need to contact the Representatives and Senators listed below, as they are Conferees and will have final decision as to the inclusion of Section 1073 and 1074. Please review the draft letter (ready to be cut and pasted to your letterhead) and the attached fact sheet. Both items should be e-mailed or faxed to your Congressman. (Sending to Congressmen outside your area will have little to no impact.) The 5th paragraph has a bolded sentence where you MUST personalize or remove the sentence.
Who is your Congressman?
Contact a Senator from your state, or in state where you do business. Contact a Representative if you have property or do business in their
district. If you are not sure check this site:
Please contact your Senator or Representative if they are on this list.
List of Conferees on HR 4173:
House Democrats:
- Financial Services Chairman Barney Frank of Massachusetts
- Howard L. Berman of California
- Leonard L. Boswell of Iowa
- John Conyers Jr. of Michigan
- Elijah E. Cummings of Maryland
- Luis V. Gutierrez of Illinois
- Paul E. Kanjorski of Pennsylvania
- Mary Jo Kilroy of Ohio
- Carolyn B. Maloney of New York
- Gregory W. Meeks of New York
- Dennis Moore of Kansas
- Gary Peters of Michigan
- Collin C. Peterson of Minnesota
- Bobby L. Rush of Illinois
- Heath Shuler of North Carolina
- Edolphus Towns of New York
- Nydia M. Velázquez of New York
- Maxine Waters of California
- Melvin Watt of North Carolina
- Henry A. Waxman of California
House Republicans:
- Financial Services ranking member Spencer Bachus of Alabama
- Joe L. Barton of Texas
- Judy Biggert of Illinois
- Shelley Moore Capito of West Virginia
- Scott Garrett of New Jersey
- Sam Graves of Missouri
- Jeb Hensarling of Texas
- Darrell Issa of California
- Frank D. Lucas of Oklahoma
- Ed Royce of California
- Lamar Smith of Texas
Senate Democrats:
- Banking, Housing and Urban Affairs Chairman Christopher J. Dodd of Connecticut
- Tom Harkin of Iowa
- Tim Johnson of South Dakota
- Patrick J. Leahy of Vermont
- Blanche Lincoln of Arkansas
- Jack Reed of Rhode Island
- Charles E. Schumer of New York
Senate Republicans:
- Banking, Housing and Urban Affairs ranking member Richard C. Shelby of Alabama
- Saxby Chambliss of Georgia
- Bob Corker of Tennessee
- Michael D. Crapo of Idaho
- Judd Gregg of New Hampshire
Donations to support this effort of a $100 or more would be appreciated, and may be sent to:
National Association to Protect Private Property Rights
1725 east South Lake Blvd. Ste. #102
South Lake, TX 76092
Don’t forget, here is the customizable letter to email or fax to your representative, and the fact sheet to attach to it:
When banks say NO, I say YES!
| Discussion: 3 Comments »
High End Luxury Homes Falling in Value, Agents Looking for Creative Solutions
June 7th, 2010 categories: Land Trusts, Real Estate News
Diana Olick over at CNBC puts out a lot of relevant data. Jumbos are really making the news these days. (You saw my last related post, right?)
“It seems that while the middle and lower end of the market was seeing real price recovery this Spring, the high end, which was pretty flat all fall, started to really tank from March through May.
Not surprisingly, the inventory of high end homes surged in January, just before that price drop and is continuing to climb.”
One real estate broker I’m working with in the Calabasas area is tweaking her business to increasingly implement alternative strategies for her high end clients. One of her listings isn’t moving because the sellers are insisting on $1,100,000, when the market only wants to pay $900K - $950K. (If they wait too much longer, the market might only want to pay $800K!)
If she can get this listing sold, then they’ll buy this other $2mil home they’ve got their eye on, so getting the listing sold for asking price is worth $3mil in business. We’re working on it . . . if we can get them to offer terms, then there’s a good chance they can get their price.
There’s not much help for many high end homeowners who are already far under water and have unattractive short term financing in place, but there are a few we can help who still have equity and happen to have great long term financing . . . but they’d better not sit around! Those trends above don’t look especially promising.
When banks say NO, I say YES!
| Discussion: No Comments »
California Jumbo Loans at a Standstill Highlighting Opportunity for Title Holding Trusts and Owner Financing
June 4th, 2010 categories: Land Trusts, Real Estate News, Seller Financing
This post explains why, if you own a high-end home, you shouldn’t necessarily “wait for the economy to recover” so you can get your price, unless you’re prepared to wait a very long time.
Keith Jurow over at the Real Estate Channel recently wrote a compelling article that relates specifically to everything I’ve been talking about for a while now. Make sure you read the full article.
As jumbo mortgage defaults have skyrocketed in the last two years, banks have raised down payment requirements for new loans and sharply curtailed the total number of jumbo originations. According to Lender Processing Services . . .
66,000 jumbo loans were originated nationwide in March 2007. In March 2010, a mere 13,000 were closed.
The drying up of jumbo mortgage money has made it extremely difficult to sell almost any California home which is encumbered with a jumbo mortgage. That has put tremendous downward pressure on prices for these homes.
If you want to sell a high-end home and preserve what equity you still have, then
- sell sooner than later,
- be flexible and willing to offer terms in one way or another, and (unless money is not an issue)
- don’t get yourself in a negative cash flow situation by leasing your property out instead of selling it . . . not a good idea heading into uncertain economic times
If you’re a buyer that can afford a luxury home, then just know that there are many opportunities for you to buy without getting a new bank loan if the existing financing is reasonably attractive.
When banks say NO, I say YES!
| Discussion: 3 Comments »
