Re: The truth on House Bill 1787

[ Follow Ups ] [ Post Followup ] [ CREOnline News Group ]

Posted by James on June 09, 2009 at 17:16:43:

In Reply to: The truth on House Bill 1787 posted by William Bronchick on June 08, 2009 at 13:41:48:

I don't get this, why would someone pay a huge down payment to you on a owner financed house if they have to qualify ? I know where you want to sell the note it makes sense for them to qualify & of course you want to make sure they are able to pay but but for someone with a huge down payment say 15-20% where they maybe self employed & don't meet traditional lending criteria that would greatly hinder most investors or someone with a bad credit score but has verifiable income now. If they qualified they could just go get a low interest mortgage loan with less out of pocket expense. I see no advantage here for the investor.

Its just like lease option in TX where I'm from where you can only do a 6 month lease option before it becomes a executory contract. In essence it makes no sense to do them and most investors including my self started doing wraps after this was passed.

I guess the the ultimate question is "qualify" according to what guidelines ? If its left to the investor then I see its a wash.

Your quote:
"Finally, the bill would require that you actually qualify your buyer. It prohibits, "lending without due regard of the mortgagor's ability to repay". Duh! Only a fool would put someone in an owner financed house deal without checking their income, debt and credit."

Follow Ups:


Post a Followup

Name    : 
E-Mail  : 
Subject : 

Comments:

[ Follow Ups ] [ Post Followup ] [ CREOnline News Group ]

CRE Online, Inc. © 2007, All Rights Reserved.
creonline.com