Residential Real Estate Agent · Long Beach, CA · Member since 2008 · 432 posts · 63 votes
I'm a listing agent and the seller will offer seller financing. There is a buyer who is also interested in seller financing. I've been advised by several people to find a mortgage broker who will help with this because of the SAFE Act regulations. My favorite lender said "he wouldn't touch it with a 10 foot pole" because of SAFE.
Have you ever used a mortgage broker to structure the deal and if so, how did you find one that would do it? FYI--it's going to be owner occupied, it's a condo and the seller wants to impound prop. tax, HOA dues and parking fees to guarantee the payments are made. We're looking at a 5 year note with no balloon.
Wholesaler · garden grove · Member since 2008 · 91 posts · 13 votes
13y
Shari,
Seller financing is not a loan. it's the terms of the transaction. So, as long as your seller client agree the the terms of the buyers, then you guys sit down, drawn up the terms and agree to hold them to the upmost agreement. Also, I don't get whey you all have to bring the mortgage broker into the deal with. First of the reason why we agree to do seller finance in the first place because the buyer is not able to obtain a loan in the first place or choose not to, so why bother with the mortgage broker. IT's a human business, and it's all people to people. So again, sit down and discuss the details and work them out.
Lender · Tyngsboro, MA · Member since 2009 · 3k+ posts · 2k+ votes
13y
Tin Lam, the reason to use a mortgage broker is to stay on the right side of the banking commission or attorney general.
the SAFE act now mandates all states have SAFE act provisions at least equal to the federal law. All lenders including those doing seller financing are required to be licensed. And to comply with all residential lending requirements, RESPA, TILA, etc.
Do the transaction improperly and the borrower ends up in foreclosure, and files a complaint, and you're in big time hot water. Not worth it.
Residential lending used to be a people business. Now it's a regulatory business.