There will always be B/C/D buyers out there that will take on most any kind of financing that allows them to get into a home. But if you take on a DOT/Mortgage for a buyer, you will not be selling it back out to the open market. You still have to follow the state’s laws on ‘financing’ or ‘usuary rates’.
You never know, but maybe Georgia will rewrite the law on this during this term. A bunch of legislators may hear complaints that Countrywide won’t give loans here so we have to do something to get them to start offering financing again for our BCD buyers in Georgia. Shortly thereafter, you might see a new headline reading Countrywide to offer financing to BCD buyers in Georgia.
Re: Countrywide pulls out of Georgia - Posted by Steve (Atl)
Posted by Steve (Atl) on February 14, 2003 at 14:29:38:
Can’t help but wonder what the effect will have on us investors that take back mortgages. First, will we see a windfall of new opportunitites? SInce the B/C/D lenders are getting a little nervous here, will this provide us with those customers that need the financing? And secondly, will what put them off (these adverse laws that claim to regulate predatory lending) have similar consequenses to us for providing owner financing.
Anyhow, I see this being temporary as the state legislature is preparing to rewrite the law this term. But who knows.
The way I read it, it is only for Georgia, and it looks like they don’t want to be caught in any liability for further travel down the pipeline. If they have a mortgage on a property, then they sell it to the open market, they still might be sought after in the future if the laws in Georgia find something out of whack.
Can they? Sure, but will they? This article seems to indicate they will no longer issue and/or purchase loans. Again though, I read the article as a liability issue. In part due to the “assignee liablity” clause that is evidently in the Georgia laws.
