Seller Financing..What has changed?
Part of taking the fear out of buying and selling is staying up-to-date on the rules and constant changes that are occurring and make buying and selling much different than it used to be
How does the S.A.F.E. Act impact Sellers?
The SAFE Act is designed to enhance consumer protection and reduce fraud by encouraging states to establish minimum standards for the licensing and registration of state-licensed mortgage lenders
This will now be enforced at the end of May, Sellers who elect to do Seller financing have to be licensed in order to have this option. There are two exceptions:
1. Seller’s primary Homestead (no rental homes or secondary homes)
2. Loan by family member or Trust
If violated, you can be subject to a Misdemeanor and fined
Real Estate agents must beware because we are not authorized to give advice on any of the terms and must make clients aware. We are being advised to have the client speak with an attorney and get forms from them as well.