Pennsylvania Crackdown On CFD's

[Chris Seveney]

Many of you were familiar with Harbour Portfolio and the state of Pennsylvania cracking down on CFD's in the state. Many who bought Harbour loans were contacted by the Attorney General (and ones I know were required to modify the loans with lower interest rates and transfer them to traditional mortgage and note).

For those that have been following, there is another suit pending against many of the bigger players like Vision, One Pine (part of home opportunities). The suit is against 60 firms. 

If you do own CFD's in the state of PA, I recommend reviewing this case (GD-19-014368) and speaking with your attorney about it.

[Jay Hinrichs]

sounds like AG trying to root out sub prime loans ..  

when organized sellers of CFD  do this as a business model and get the buyer to pay OVER market for the property.

write interest rates much higher than going rate for owner occ.

this is bound to happen.. along with I am sure many buyers who when they cant pay just walk away..

and let the owner do it all over again.

Trying not to be a hypocrite here as i have sold many of my OREO inventory on notes..  Although my model was generally
Zero % interest with very high payments so they owned them free and clear in 30 to 60 months.. those that follow through with the terms are quite grateful to have a paid for home in a short amount of time.  Or investor who have bought from me same thing next thing they know maybe they were 200 or so negative for 3 to 5 years but then the investment property is paid for and now your cash flowing like crazy.