All Forum Posts by: Lori Hunter

I think you are right Stephanie Dupuis. I think there is a way to do this legally, but of course the profits won't be as enticing. Good luck talking with attorneys. So far I'm finding that even those at the state level financial divisions aren't sure how to interpret the laws. Im stumped that I was told an unsecured loan on a "personal property" is even considered a mortgage. The simplest way I believe is to get a MLB on your team and work the numbers. You are probably right that quantity is going to work to your best benefit. Please keep me informed on what you find out and I will keep you updated on my findings also. I plan on repeating my questions and ideas until I find the best feasible way that IS in compliance. I believe it is out there.

Definitely do your research on the S.A.F.E. Act first. These days its not really legal to draw up your own loans and just notarize them. I placed a call to HUD in Washington and to the division of finance in our state, and was told specifically that I would have to have a license or pay a MLB, even if the promissory note was unsecured. And, according to them, the same applies to a lease option. (It seems absurd, but I was very specific.) Seeking an attorney is definitely advisable, but I have found that they arent even very familiar with the S.A.F.E Act themselves.

John Fedro The trust still holds the title until the buyer has paid in full right?

Thanks a bunch for chiming in Dawn Rickabaugh. I will certainly contact those two recommendations. And thanks for the words of wisdom too. Im feeling better about it and less stressed. I feel like I know what my next step is now and that helps.

Right. Ok, got it! Thanks

Your information so much appreciated Tom Goans. I will most definitely contact him. I think we just needed a suggestion like this to get our foot in the door.
If not, Im just going to keep kicking at it until it opens! lol.

Thanks Joel Owens:) I guess I just needed to vent a little. Finding an attorney who is also an investor is next on my list!

Joel Owens Can you recommend me one of those attorneys! ;)

Well, lol, I have decided that there really is no answer to any of theses questions. Im not sure that those that made the laws even know the answers!

You cant discuss the numbers/terms of your own sale!
You can't loan your own money without an attorney/MLO.
An attorney/MLO doens't want any part of it! Go figure!
The laws are confusing.
The interpretations are beyond conflicting.
Heck, the real estate attorney I just spoke with sounded unfamiliar with the Act all together!

After talking for a while, she attached a copy of the Act in an email and said it is her opinion that someone providing seller financing would not be considered a "loan originator".
I have been researching until my eyes are crossed, and this is the part where I start to really pull my hair out... because, how are you supposed to follow laws that no one even understands!?! Aaand, those that are supposed to be responsible for upholding this Act either have no clue, or don't want to help.

I guess for the little people like my husband and I who only have a couple houses under our belt, no collection of attorneys working for us, and no banks of cash to work with, this feels immobilizing. We have big ideas and lots drive and figured working with used mobile homes was a great entry point for us. A place to help people and learn at the same time while making a little money. But, I've become terrified of the threat big fines and possible jail time if we dont comply. And frankly we aren't sure how to comply:(

I posted this in an old thread and didnt get much response. Ill try it here...

I've been reading all I can about the SAFE act. I even called the Florida Division of Consumer finance and am still not exactly clear on compliance (I will be making some attorney calls next), but...

From what I can decipher, having an attorney/MLO draw up the paperwork and close on the loan seems to be the simple answer. Why does this seem to be such a problem? I know there is a fee, but in the scheme of things there is still quite a profit to be made right? Is the problem that they actually negotiate the terms? Are we as seller financers still allowed to discuss numbers at all? Is the problem that the attorney/MLO will discourage the numbers (down payments, interest rates, etc) and try to negotiate the buyers a better deal? I can't seem to find a large enough downside to finding an attorney to close (here in Florida) to be discouraged by this.

The continuation of this question is, (assuming an attorney/MLB handles the paperwork) are we still able to advertise and market as providing seller financing with low down, or is this crossing the line also??

I know this is an old thread, but I've been reading all I can about the SAFE act. And, from what I can decipher, having an attorney/MLO draw up the paperwork and close on the loan seems to be the simple answer. Why does this seem to be such a problem? I know there is a fee, but in the schemes of things there is still quite a profit to be made right? Is the problem that they actually negotiate the terms? Are we as seller financers still allowed to discuss numbers at all? Is the problem that the attorney/MLO will discourage the numbers (down payments, interest rates, etc) and try to negotiate the buyers a better deal? I can't seem to find a large enough downside to finding an attorney to close (here in Florida) to be discouraged by this.