Proposed HUD Rule Prohibits Seller – Financing Without Licence Except For Family Or Own Residence

“The Secure and Fair Enforcement Mortgage Licensing Act of 2008 (SAFE Act), as a key component of the Housing and Economic Recovery Act of 2008 (Pub.L.110-289) enacted into law on July 30, 2008, directs all States to adopt licensing and registration systems for loan originators that comply with the minimum standards set by the SAFE Act. The Department of Housing and Urban Development (HUD) is charged by the SAFE Act with establishing and implementing a system for mortgage loan originators in States that do not meet the minimum requirements of the statute. So, HUD published its proposed Rule on the minimum standards under the SAFE ACT that States need to comply with in licensing loan originators, procedures and actions, as well as its enforcement authority in the Federal Register, Vol. 74, No. 239, December 15, 2009. Moreover, HUD proposes “to clarify or interpret certain statutory provisions that pertain to the scope of the SAFE Act licensing requirements, and other requirements that pertain to the implementation, oversight, and enforcement responsibilities of the States.”

The HUD proposed Rule, if codified as a Final Rule or regulation, would eliminate the business strategy of acquiring and reselling properties through seller financing without being licensed as a loan originator, unless: (1.) an individual offers or negotiates terms of a residential mortgage loan with or on behalf of a member of his or her immediate family; or (2.) an individual seller provides financing to a buyer pursuant to the sale of the seller’s own residence.

Proposed Rule Prohibiting Seller Financing Deprives Owners Of Property Rights Under The 14TH Amendment:

One of the cherished rights of U.S. citizens is property rights protected by the 14th Amendment of the Constitution from any state action without due process of law, which allows owners to dispose of their properties in any way they see fit.

One of their property rights is to sell their properties through seller financing to assist buyers who cannot qualify for bank loans. The usury provision (Article 15) of the California Constitution prohibits loan-shaking activities, charging in excess of 10 percent per annum, unless exempted by a finance lender’s license. Requiring owners of residential income properties to be licensed as loan originators in order to sell such properties through seller-financing directly to buyers interferes with property rights of owners.

The proposed Rule seeks to eliminate property rights exercised by property owners through centuries in favor of more regulations and of banks at the expense of home buyers with bad credit.

Proposed Rule Impairs Obligations Of Existing Contracts Protected By The Constitution:

The contract is the law among the parties. A property owner has the right to sell his or her property, including seller-financing to enable a buyer short on cash to consummate the sale.

Seller-financing likewise enables a seller to sell his or her properties faster, and earn income during the duration of the promissory note being financed.

The proposed Rule would impair obligations of existing contracts in cases involving contracts to sell with seller-financing, lease with option to buy with seller-financing, and other similar contracts.

Proposed Rule ยง3400.13 Requires Individuals To Be Licensed By States With Exemptions:

3400.13(e) of the proposed Rule provides that a State is not required to impose the prohibitions: (a) from “engaging in the business of a loan originator with respect to any dwelling or residential real estate in the State, unless the individual first registers and obtains and maintains a valid loan originators license for the State; and (d) complies with the same requirements in the case of an independent contracts engaging in residential mortgage loan origination, if: “(4) an individual who offers or negotiates terms of a residential mortgage loan with or on behalf of an immediate family member of the individual; and (5) any individual who only offers or negotiates terms of a residential mortgage loan secured by a dwelling that served as the individual’s residence.”….(underscoring supplied)

Loopholes To Proposed Rule:

A loophole to the proposed Rule is for the seller, who is amenable to seller financing of a residential income property, to hire the services of a licensed loan originator to offer or negotiate terms of a residential mortgage loan to a prospective buyer.

Another loophole is to retain “a licensed attorney who only negotiates the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the attorney’s representation of the client,” and who is not “compensated by a lender, a mortgage broker, or other mortgage loan originator or by any agent” thereof, pursuant to 3400.13(e)(6) of the proposed Rule.

Conclusion:

The proposed Rule, prohibiting seller-financing without loan originator license except for family or one’s own residence, should not be codified into regulation because it deprives owners of their property rights to indulge in seller-financing, and it impairs obligations of existing contracts.

If it is found to be within the constitutional rule-making power of the Congress delegated to HUD, and not an over-reaching regulation beyond the scope of the SAFE Act, the loopholes of hiring a licensed loan originator or licensed attorney are available to owners willing to do seller-financing.

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Debt Consolidation Finance – Licensing of Debt Driving out

Financing, as debt consolidation finance is the simplest and most uncomplicated way of dealing with various debts. The idea is that one takes out another loan which is large enough to pay off all your debts such as credit cards, personal loans, business loans, medical loans, overdrafts and other loans. Debt consolidation finance leaves individuals with one single monthly repayment to make, which is already a great step forward in making ones finances easier to control.

Surely that the financing takes out at a comparatively low interest rate, one should find that ones total monthly repayment is lower than it was when one was servicing many smaller loans, with more expensive debts. Also, choosing a longer term to repay ones financing will lower the costs even more.

The debt consolidation finance works as mediator between various lenders and a borrower. For, there are scores of lenders available online and offline for this debt consolidation finance, with their respective policies and plans, these lenders provide two modes of availing this debt management financing plan. In one of these plans, collateral pledging is an essential part of the mode, whereas another plan requires nothing as of borrowers’ security.

More so, those individuals who are hit by the adversity of bad credit history too, can avail the facility of debt consolidation finance. Lenders keep no financial distinction on providing this debt management financing program. Such individuals only may have to pass by some tardy official works, due to their unwilling adverse credit history. No matter, owing to stiff competition amongst lenders in the money market, borrowers get many other chances of getting these loans instantly with quick approval.

Advisably, before signing up with a finance company for debt consolidation finance, individuals will take over the servicing of their debts in return for fee. Instead of having to keep up with all ones repayments to many creditors, one can now make a single payment to the management or financing company who will divide it between. This in itself can be a great weight off your mind, as the stress of keeping track of your repayments in removed, but debt consolidation finance can offer more than this. And, it can work as licence for driving out debt devils.

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Is It Wise To Buy a Luxury Home In Pune?

The term ‘luxury’ has taken a whole new meaning in this city called ‘Oxford of the East’. Known for its high-quality education opportunities and growing IT, Pune is today becoming a renowned name in the real estate industry as well. Due to the commercial progress in the city, a number of industrialists and high-net individuals are now immigrating to Pune. Pune has seen a paradigm shift in the kind of housing and residences it offers since the last decade. From wadas, standalone buildings and own bungalows, the city’s skyline is now giving way to townships, luxury projects, high-storey buildings and row houses. The transformation is not a sudden one though, it is the demand of the residents of Pune that has led builders to create new and improved homes in the city. Earlier, one could easily find a 2 BHK apartment in Pune within 50 lakhs. But today, it is impossible to find a good apartment at that cost in the city.

The same goes with luxury homes in Pune. The cost and the configuration of luxury homes are constantly on the increase. Today, you will find a number of projects offering 4 and 5 BHK luxury apartments in Pune, penthouses, row houses, etc. These projects also deliver a world-class living experience with amenities and facilities of international standards. The cost of these homes however, are above 3 crores, going up to 10 and 15 crores depending on the location and the project. These high costs raise a question of whether it is a wise decision to buy a luxury home in Pune?

The answer is yes, if you purchase with the right builder at the right location. Today, a number of builders have come up in the city offering way too many luxury projects. If you are a first time buyer in the luxury segment, you might want to take assistance from real estate experts before you shell out such a huge sum of money. Location is also a very important factor to consider before you make your decision. Pune has spread out widely in recent times, confusing buyers as to which would be the ideal location to buy a luxury home. Some of the best locations to buy premium properties in Pune include Kalyani Nagar, Viman Nagar, Kharadi, Hinjewadi and Model Colony. These are areas that are close to business destinations and yet present you with a serene and natural environment around your home. Another benefit of buying in these areas is the rapidly growing appreciation rate, giving you great rewards on your investment in the years to come.

Next important factor to consider is the builder. Choose a builder who has developed premium properties in his portfolio, understands the integrities of luxury living and promises you good after-sales service. These qualities will differentiate the good builders from an excellent one. When you are spending such a large amount of money, make sure you buy a premium property that will soothe your senses and celebrate YOU!

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Costly Mistakes When Buying Luxury Homes

Owning a home is a must for almost every individual. Of course, by having your own home, you have a safe and secured place to stay in. Homes are also good investments, which can increase in value over a period of time. When you own a home, you can also provide a better and more stable future for your loved ones. However, there are some home buyers who seek for luxury homes.

During the past, owning a luxury home is only for the rich and famous. Luckily, there are now luxury homes that are quite affordable. When looking for such homes, you should be cautious since a simple house buying task can turn into a night mare. To avoid this, below are some of the most costly mistakes when buying luxury homes.

Not considering the real budget

One of the most common mistakes individuals make when buying luxury homes is not considering their real budget. When searching for a home, most individuals want numerous features from the materials used up to the designs. Of course, you may find the perfect match you are looking for. But, the problem is you do not know if you want to spend such a big amount of money for the home. As a result, you may end up spending too much money in searching for the right place to live in. It is important that you first set a real budget before searching for a home you want to purchase, in order to eliminate unnecessary choices.

Neglecting future expenses

The next mistake home buyers make when searching for luxury homes is neglecting future expenses. Even when all the items and features in the home are working properly, in time, you will need to do some repairs and maintenance work, which can be sometimes costly most especially for unique features such as glass walls or doors. So, make sure to have the finances for repairs and maintenance.

Forgetting to check the community

Forgetting to check the community is another mistake home buyers make when buying since there are cases when buyers only focus their attention on the house. When this happens, you are not sure if you have sufficient security in the community. Apart from that, you may also have difficulties accessing amenities like supermarkets and shopping centres. Because of this, you might spend more on transportation and security services.

Going too big

Finally, going too big can also be a major mistake when buying luxury homes since bigger houses mean more money to spend. In addition, bigger houses mean you also have a larger place to maintain, which can surely affect your finances. Other than that, there are also some features that are not useful and can only increase the price of the house you wish to purchase.

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The Latest Trends Of Luxury Home Remodeling And Renovation

Most homeowners consider home renovation to better improve their living quality and to achieve some of their dreams and desires. Remodeling may vary a great degree from a bathroom and kitchen upgrade to building or deck or a whole new room or two to your home. On the other hand you may choose to partner with home remodeling companies or become your own general contractor. No matter how you wish to carry out the project you should always make wise home remodeling choices whilst considering the return on investment.

Noteworthy Trends To Follow

You will always be the best judge of what you wish to achieve from luxury home remodeling as it is ultimately about making your home completely personal. You do not need to blindly follow trends, but the following are noteworthy to get an understanding of what’s in vogue and get valuable tips from them.

Go natural – Wood finishes are definitely high up on the trend dashboard. There are certain cost implications when it comes to natural wood but there are many substitute such as steel windows with wood finish to serve the same purpose. Stone floors are also an eye-catching option worth considering.

Go contemporary with more open spaces – Open floor plans tend to yield more usable space. You could also blend in some glass walls to bring the outdoors closer. Natural lighting would be an added bonus here. You may also have open spaces open directly into the backyard or patio to give a more luxurious effect.

Go green – Current trends now show more focus towards loving healthy and creating healthier homes. Such aspects include clean air-filtration systems, energy saving appliances, and sustainable raw materials among many others. These not only act as smart investments significantly impacting your home value, they help you and your family stay healthier which is priceless.

Some Trends Best Avoiding

If you plan to live in your current homes for only about 2-3 more years, it is best to avoid a fancy and pricey home renovation. In such a case consult with home remodeling companies on whether you should go forward with your plan. There are also some over-the-top home improvement projects you should generally avoid (unless these are essential components of your dream home) such as high maintenance items like in-ground swimming pools and expensive landscaping. It is also best to think twice before investing in very pricey items such as sunrooms and whirlpool baths depending on whether they are actually required.

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Experience Luxury Lifestyle With the Luxury Home

We are all aware that Miami is one of the best real estate markets. It is one of the most improved and stable market if you want to do some investments. If you are going to observe the market, there is a quick turn over with your investment.

This is the reason why there are lots of people who are into investing in this magnificent city. If you are into search Miami is also the best place to be. There are lots of bargain properties that are presented to the public for sale. The numbers of properties that are for sale is due to the mortgage crisis that gripped the entire nation. And because of this, even the price of the Miami luxury home is affected. Now there is lots of luxury home that are for sale and for sure you will get your money’s worth as you buy one of these luxury homes.

But in order to be sure that you will get the best deal there are some important factors that has to be considered. The first thing that you must consider is the location of the Miami luxury home that you are planning to invest. Most of these luxury properties are located at the safe and secured places. There are different neighborhoods that you can choose. It is important that you have to check on the exclusivity and security of the neighborhood. It is also important that you have to check on the laws in that particular location. It is important that you have to be aware with these laws and be sure that you are willing to abide them to avoid future problems.

Another important factor that you need to consider is your financial status. It is important that you have enough financial resources in order to get the best deal out of these Miami homes. Determine the amount that you could safely dish put for this investment. Despite of the decline on the prices of the home, prices are still high especially for average earners.

As you buy a Miami homes, there are some modifications that you want to do. And because of this, it is important that you have allotted budget for the repairs and some modifications. In this way you can be sure that you can comfortably stay in the luxury home.

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Luxury Home Improvement

There comes a time when a family house may need a major make over. An increase in your income or a promotion may also prompt you to upgrade your home so that it fits your new economic status. Or maybe you just want a little luxury in your home so that a relaxing time is just that; for relaxing. Regardless of the reasons why you may want a little more luxury in your home, the luxury home improvement tips will give you the ideas on where to start.

If you would like to give your home a face lift and you don’t have much to spare, don’t worry. There is something for everyone in the luxury home improvement plans. For example, if you are one of those people who can’t sleep before they read, then an elegant bookshelf may give a classy touch to your home. If you would like to upgrade your bath area, there are a few ideas that you can adapt from the luxury home improvement plan.

You can decide to increase the size of the master suite, or include a walk in closet or simply improve your bathroom amenities from the luxury home improvement suggestions. Vaulted ceilings may work magic to give your home the feel of extra space. Others may prefer to have steam rooms in their homes, while for those who cannot resist the temptation of a relaxing hot soak, Jacuzzis may work just fine.

You may be among those people who have got it big this time round, so the cost of implementing the luxury home improvement plan is not much of a bother. There are grandiose plans that may work for you as well. For those who are not bothered by stairs, a storied house may be fun to try out this plan.

For those who are inclined to sports, a bowling alley is a great idea from a luxury home improvement plan. You can also include a workout room. For those who find water relaxing, a swimming pool will shorten those tiresome afternoons. Multiple car garages may work well for those who foresee more fortune. For more fun, a media center can be included in your home. If you are among those who love nature, you may want to include a conservatoire in your luxury home improvement plan. A guest house or servants quarters may also be worth consideration.

Do not forget to compare the luxury home improvement plans that you have been given before you settle down to what works best for you. If you do not find a plan that suits you but there are a couple of ideas you like from those plans, and then make your own luxury home improvement plan. Combine all ideas you have for your home, and then discuss them with a professional.

Keep away from improvements that will draw unnecessary attention to your home. The main objective of these luxury home improvement plans is to add comfort to your home. Make sure you choose improvements that will enjoy. After all, didn’t you pay that much to increase the fun and comfort?

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