Seller financing is no longer in Massachusetts

Ask why? Did she say you have to be a licensed mortage broker or something like that?
I am not sure what to do with a situation like this and am curious to know as well.
I don't if a lot of the homes you come across are like that, but you want to try to avoid homes with little equity, because from what I understand it really limits the seller's option and thus your options.

RENinja

Maybe it has something to do with the SAFE act. Maybe the sellers can offer financing but it has to go thru a licensed broker. I would ask her what changed, when it changed, and why it changed.

Don't necessarily count out homes with little or no equity...those can be good candidates for subject to or lease options

TRSD:

What is the SAFE act?

The Secure and Fair Enforcement for Mortgage Licensing Act of 2008. A bunch of rules that Congress put together to appease the public after the housing/mortgage industry got in trouble. The problem is that Congress always reacts to a situation instead of acting in the country's best interest. This Act is another example of that.

You can read the Act here: (It is 54 pages)

http://www.ffiec.gov/pdf/safeact.pdf

She said the government stopped seller financing because buyers couldn't keep up with their payments. I think this was around the time when the market was sky high. Im going to call my lawyer tomorrow to see whether or not the law was actually passed in Mass. If it is I would still be able to perform a subject to right?

I was searching online and still find a lot of Seller Financing in MA, so not sure if the realtor is up to date. Below is a link from the realtor website in regards to the Safe Act. The National Association of Realtors is actually working with the government, trying to relax a lot of these rules. We all know the credit market is hard nowadays, and they know that seller financing is a good alternative.

http://www.realtor.org/wps/wcm/connect/d80c620045b7c568bdfdff342c47dc89/...

Copy the link in your browser and read the pdf. I really believe your best bet will be asking the attorney and not the realtor. I can see a lot of seller financing in MASS just by searching on google.

You're simply asking a NON-QUALIFYING person about something. Why ask a burger flipper how to make a space craft? She's not qualified to answer that. Consult with your ATTORNEY.

Thank you for the link. If I do find out that I could do seller financing, im calling the realtor back and I'm cussing her out.

I never even ask her if Mass stopped doing Seller financing. We was talking about the ARV and making offers on properties, and I asked her, if a house have little equity in it should I wrap the mortgage and offer seller financing to the buyer. Thats when she said Massachusetts stopped seller financing, because buyers were defaulting on their mortgage payments.I should of just did my homework right after she said that, because a lot of ppl will give you false information. She said she was a Realtor/Wholesaler so I dont know if she was saying this to keep me naive about the situation to create less competition or what. Its hard to trust anybody in this game. Im just glad Im on a forum like this where I could get some real help.

I have another question, but it has nothing to do with this. Most investors use the 70% LTV but where do the 70% come from. Does it come from a property being 30% below market value, or the amount of equity on a home?

instead...use your time to find a more compatible agent that will work with you instead of hinder you.

Hi supreme 617, dont cuss out any one use your time wisely an get some one else we are here to improve our lives an to help others as well, dont waste your time you wont get it back once its gone its gone, ( Marks right, thanks Mark). Also Trust Point is right as well, Realestate Investors have done more to help this housing situation than anyone so we roll with the punches so to speak an jump the hurds when we can a keep going, we are problem solvers an we are creative to find solutions when others cant or arent willing, have an awesome day all!!!!!!lets keep these choo - choos moving, Jim

I'm guessing the SAFE act was something that was similar to what was put forth in Louisiana. ,Don't know what the bill was called, but it was defeated as far as I know in Louisiana. In effect, if you wanted to sell your own home with owner financing, you had to become a licensed mortgage broker with the state.

RENinja

Im getting tired of trying to find a good realtor, but Im going to keep on searching. Would somebody be able to answer my other question though.

Most investors use the 70% LTV but where do the 70% come from. Does it come from a property being 30% below market value, or the amount of equity on a home?

There is always a good realtor who wants to work with you.