Thanks Ted, I was typing and missed your post. Seems i get into alot of grey sometimes, lol...
@K. Marie Poe I think you are taking a wise approach, especially in CA with its recent MB statute that seems to be in the mill.
If any state does not adopt specific aspects of the SAFE Act, the federal Act prevails, if CA is silent they must simply be assuming the federal version alone.
The term "offering" is confusing, there is a split there, offering specific terms and conditions is for the MO or attorney after due diligence wich is the intent as mentioned, it specifically allows a seller to say they will consider financing or make an offer to finance but not as to specific terms as the seller is not qualified to originate terms necessary for any borrower. Might think of it as an initial offering and the final "offering of terms and conditions".
And, it may be years before you get to read case studies on any seller financed matter. I suspect you'll see it in CA before many other areas if it's left up to the states to enforce matters on the front lines.
It's just my guess that HUD has other things to do and it would have to be a serious infraction before they would go after a seller/originator of a single home (especially since so many exemptions have been adopted) Most likely it will be some dealer, selling several units as thier business before HUD would be turning up. And, most likely it will only surface if deals start blowing up and complaints are filed.
The recent FCPB issue was on the local news here and it was a MB in Mo. Ar., the guy got 3 years and was ordered to repay the losses. Sounded like he just got in over his head to me, he may not have had the intent to defraud investors originally, but couldn't cover losses...JIMO.
Here is another issue too as to case studies, HUD prefers to slap hands out of court quickly and efficiently, many issues don't go to court, they plead out to a closed hearing or agreement, pay fines and go on the HUD naughty list and the public may never hear of the issue. At least that seems to be the SOP for the midwest region out of KC, Mo. I've had several meetings and casual opportunities with the past Regional HUD Dir. and he spoke softly and carried a big stick but was keen on PR and the political nature of the office as well.
So relying on past convictions to form any views on the matter could take years to get a clear picture.
Seems like we had a discussion here on BP about CA Real Estate Broker/agents being exempt from the offering issues when act in the presentation of and representing clients of a transaction. I'm clearly understanding that they are not MOs authorized to originate loans off the street, but as to the transaction they are related to.