Posted by Entrust Sacramento on Wed, Jul 01, 2009
If you are a real estate investor or private lender, be aware of the pending passage of H.R. 1728, which places limits on private financing. H.R 1728, called the Mortgage Reform and Anti-Predatory Lending Act, has passed in the House and is pending passage in the Senate. Passage of this bill in its current form could change real estate financing in that it places limitations and restrictions on private financing, even for the individual homeowner seeking to sell a home using the seller carryback option as an alternative method of financing for the purchaser.
Some of the restrictions and limitations contained in the proposed bill include:
• Restrictions and limits on how many homes you can sell within a 36 month period
• Restrictions and limits on seller carryback financing
• Restrictions and limits on private financing
• Restrictions and limits on terms for "creative financing"
I strongly suggest that if you are investing in real estate using your self-directed IRA to conclude any proposed or pending transactions in the event this bill passes. If you are seeking to loan monies from your self-directed IRA, I also suggest that you move forward on completing the loans to avoid being affected by the bill's restrictions. This might be your last chance to take advantage of this investment option.