Posted by Bill Bronchick, Esq. on June 22, 2010 at 17:54:20:
Your nightmare is REAL, but there’s an easy way around it. The licensing is different from state to state, but basically you have to be a licensed mortgage originator (similar to a mortgage broker) or you have to USE one to close your deal.
For example, I have a friend who is one and charges me $500 to put his “stamp of approval” on the deal. No big deal.
PLEASE TELL ME THIS IS A BAD DREAM - Posted by Ken
Posted by Ken on June 21, 2010 at 23:46:41:
I heard from another attorney (name is not relevant) that LAND CONTRACTS are illegal in most states unless you are providing financing for a family member, or unless you are providing that financing for a house that is owner occupied. This attorney even provided the Senate Bills for each state that has this rule and I understand some of them have been around a long time!! Even though the IRS says you can have a Land Contract (installment sale) these other laws say NO LAND CONTRACT (unless the above conditions are met). For example, California it was SB 36.
Please clarify. And if true, and it is an old law how come the “gurus” are not telling us this. I was shocked!! But of course, I will follow the law.
Thanks and Happy Investing