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Posted on 06/14/2009 11:53:09 AM PDT by adm5
H.R. 1728 passed the House by an overwhelming majority in a record three days time. Now it’s in the Senate and is widely expected to pass quickly as well. Why the rush? Is AIG planning to hand out zillions in bonuses again?
My guess would be that our elected representatives and their banking benefactors would prefer that we don’t know anything about it.
Consider this scenario:
You own a house. You want to sell it.
Someone wants to buy it.
You decide to sell it to the person who wants to buy it and carry the paper yourself for whatever reason. Maybe you want the income instead of the cash. Maybe you’re just particularly fond of the buyer, I don’t know.
I’m sorry… you can’t. It’s illegal.
(Excerpt) Read more at mandelman.ml-implode.com ...
My guess would be that our elected representatives and their banking benefactors would prefer that we don’t know anything about it.
Consider this scenario:
You own a house. You want to sell it.
Someone wants to buy it.
You decide to sell it to the person who wants to buy it and carry the paper yourself for whatever reason. Maybe you want the income instead of the cash. Maybe you’re just particularly fond of the buyer, I don’t know.
I’m sorry… you can’t. It’s illegal.
Huh? Excuse me. It’s my house… Why can’t I sell it to whomever I choose, however I choose.
Nope, sorry. You’ll have to become a “lender” and get a lender’s license.
Why? I’m not a lender.
Well, because you’re only allowed to sell your own house once every three years without going through the bank for a mortgage. And there are a lot more rules than that, believe it or not.
It has to be a 30-year, fully amortizing loan and you must comply with RESPA regulations, provide Truth in Lending documentation, and “verify” that the borrower is able to repay the loan, just like the banks don’t.
You can read the bill for yourself… I’m going to stop right here for a moment.
The moniker for the HR 1728 bill is the Mortgage Lending and Anti-Predatory Lending Act, so it sounds absolutely fabulous, doesn’t it? It sounds like something we’ve needed for a long time… a bill to stop “predatory lending”. Who could possibly be against that?
(Before I go on, I’d like to register my extreme displeasure at being treated like I’m four years old by our elected representatives. They obviously believe that I’ll be happy to eat cow pies if they’ll just call them Ding Dongs.)
Look, obviously this is an important piece of legislation. After all, just look at what caused this unstoppable catastrophic meltdown in the first place. If it weren’t for a bunch of individual homeowners selling their own homes to other people and carrying back the paper themselves we never would have gotten into this mess in the first place. Those sellers obviously have to be stopped.
There’s another clause in this bill that I found absolutely unbelievable. The bill says that if you own rental units and the government decides that you’re at risk of foreclosure, the government can seize your property… before you’re foreclosed on, mind you. Someone wakes up in the morning and decides that you might lose your units to foreclosure, and you are screwed.
You want time to go over that one again? It’s perfectly understandable if you do.
What it said was that the legislation makes it possible for the government to seize your rental units if they deem that you are at risk of losing the property to foreclosure. I assume the intent is to prevent renters from being put out of their rented homes, which is perfectly understandable because everyone knows that it’s only okay to put actual homeowners out of their homes.
Now, I know that usually I like to go into some level of detail on these types of things, but this time I’m keeping it short and sweet. A memo ought to do it…
Memo to the Members of the U.S. Politburo… I mean Senate:
Don’t even think about it. It’s none of your Godxxxx business who I sell my house to, and if I want to get paid in marbles over 16 months with a 5,000 Twinkie balloon payment at the end of a year ending in 7, I don’t give a rat’s right foot what you guys in congress think about it. Want to know what else… get your lazy, self-important asses back to working on something that’s actually a problem, because we’ve got plenty of those and a big part of why we have plenty of those is that you guys can’t seem to stay focused on anything important for more than an hour or so. If you want to blow the banking lobby, do it on your own time… got it?
Now, back to the rest of us. Let’s get serious here. This is crap and we all know it. But the banking lobby is going to just keep throwing their heft around as they please until we put our collective foot on someone’s neck. I’m serious about this. If we don’t.. what’s next? You can’t sell more than one of your cars every eighteen months without becoming a car dealer, and providing floor mats?
People, we have HUGE problems that no one in our government has even come close to solving and this is what they’ve got time to work on? If we just sit back and say… “Oh well,” then we deserve everything we get in the future.
Remember AIG bonuses? We had congress jumping all over the place like they had ants in their pants over those bonuses. One week of pitchforks and torches and they were passing “90% Bonus Tax” legislation. Let’s flex our muscles on this piece of crap bill, and maybe after a time or two, our elected representatives will realize that we’re not playing around here.
Look… if you don’t agree, here’s what Sen. Barbara Boxer authored to add to a bill about a week or two ago:
A provision authored by Sen. Boxer requires homeowners to be alerted within thirty days if their lender sells or transfers their home mortgage loan. The measure would help homeowners whose efforts to avoid foreclosure have been complicated because they can’t find out who owns their mortgage. ”Homeowners have the right to know who owns their mortgage,” said Sen. Boxer. ”This measure will give homeowners another tool to fight unlawful foreclosures and renegotiate their loans so they can stay in their homes.”
Well… it’s about time. That’s exactly why my best friend lost his home… he couldn’t find out who owned his mortgage. It was soooo frustrating. They never even foreclosed. Finally, after missing five payments, he just gave up and moved out.
See what I mean. It’s out of Goddamn control over there. We have hundreds of bankrolled idiots running things in D.C. and they don’t even think there’s anything wrong.
Let’s let each of our respective senators know that if they even consider voting for this bill, we will all be actively campaigning against them Obama-style in their next election… no matter which party they’re attending.
Unemployment’s going through the roof, and we’ve had 1 million foreclosures since January 1, 2009. Fix that, you grandstanding morons. And leave my house alone. Don’t worry… the way things are going the bank will have it back soon enough.
And on a more serious note, in the years to come, seller financing will be the only way that hundreds of thousands of Americans can buy houses, so in terms of our eventual economic recovery, this bill can only hurt.
Here’s a link to the bill if you want to read it: http://www.govtrack.us/congress/billtext.xpd?bill=h111-1728
And by the way, I don’t think sending a letter or email is enough.
Let’s send each of our respective senators pairs of kneepads, and a map to the banks in their area. Seriously.
:)
My question is what authorizes the House and Senate members to decide who can enter into a contract. It is private property that we are talking about. If you own it you should be able to sell it, or you simply do not own it. Only pay taxes on it.
Is this the new method of financing that will bypass the bailed out banks?
Smell a very Big Rat (Demon Rats) on this one.
Bump. Thieves in Congress alert.
And how, exactly, does restricting the options available for property transfer at all help the housing industry?
Actually, I am betting the Realtors don’t object to this much, since buyer and seller might not NEED a Realtor for a deal like this.
Get to know the acronyms HERA and HOEPA.
They are Bush passed regulations that are going to bring huge changes to mortgage lending.
In short, more paperwork, more regulation, and a huge pain in the behind for everyone.
I think this might be beyond awkward. Is it time yet, Claire?
Also, consider if the socialist can do this, they can certainly make selling guns to a private party illegal as well.
You’ll have to get a “gun dealers license” a.k.a. gun registration.
The only way to defeat this nonsense is to ignore it. Of course, the overthrow the current government of criminals comes to mind as well.
Congress is touting this as a way to deal with unscrupulous house “flippers” who offer owner-finance to unwitting consumers.
It’s REALLY more about the banks ensuring their job security, by forcing both homeowner/sellers and home buyers to go through the the banks for financing.
Based upon what we’ve seen from them, and their lending practices, I think they are HARDLY in a position to criticize Owning-Financing. Especially when owner financing lenders aren’t being held hostage by the underwriters, as we are currently seeing from the home mortgage industry.
Directive 10-289
It’s coming.
ATTN: It is already illegal to sell guns to another party unless you go through a person with FFL, at least in CA, I believe, however, that it is a federal law.
This can’t be right. This is how I’ve purchased two houses. Directly from the owners, no banks, lawyers, or other red tape bureaucratic crap involved. I’ll never buy another house any other way.
More on HR 1728 here:
http://reitips.com/kill-bill-hr-1728/
Um, negatory. Hence the leftist terminology, “Gun Show Loophole” which means private party transactions, regardless of where it takes place.
I don’t know about Kahlifoonya though, knowing that state, it sounds about right.
Limited to 20 years and 8% APR interest.
I bought my first home on a land contract when I was 16 yrs old. Try getting a bank loan at 16, or even 18, with no credit history or cosigner!
Closing costs? About $50 plus whatever they want as a down-payment.
This is a very dumb bill that will truly screw over young first-time home buyers.
No need in SC thankfully, at least for long guns.
BTTT
and they probably would like to force homeschoolers to get a permit from the NEA and DOE
As much as I always hate to do this, I believe this warrants a CW-II ping. I’ll let you decide whether or not to pass it on to that ping list.
No, it'll screw a lot of people, in every socio-economic-generational group. As banks keep on hoarding money and not lending any, and as interest rates rise back to early 80's levels (15%+ is coming), owner financing will become the most probable way two people, a seller and a buyer, can transact business.
Private party exemption.
It is not federally illegal, although I’m certain that some of the parts of the USSA will toss up a roadblock or two.
I can sell you my gun anywhere. - Even at a garage sale.
there is an FBI NICS number for the general public that you can call to verify this. Look it up
The more people you reward the more power you amass as favors will be reciprocated.
Monday, April 13, 2009 The American Solution is to Further Rob the People
Wading through the alphabet soup of American governmental plans to save the private banks and their uber private bank, the Federal Reserve, one can only come to a single conclusion: since day one of the crisis, indeed, from the very creation of the bubble that could and would only lead to the crisis, this has been only about stealing every single kapeky of the people's money, their rights and powers and has been orchestrated by both branches of the One Party Two Branch system of American body politics. As I stated in The Hypocrisy of American "Democracy" and in Whom Does the US Congress Serve, the American public is living in a serious state of denial, the English along with them, if they for a second believe that their government has their best interest in mind, on paper or even as a fuzzy conception.
It is impossible for this author to accept that the heads of American and thus much of the world's finance did not know that the loose money, low interest policies and the absolute lack of any lending standards, would not lead to a bubble. Further, as the bubble grew and the few Casandra's issued their calls, it is again, impossible for this author to believe that again, these masters of national and international finance had no idea that the bubble would explode and lead to total collapse. Only an uneducated and naive fool, the general body of the Anglosphere public, was absolutely clueless.
Furthermore, as the implosion got underway and all signals pointed to nothing but an absolute route, it is again, impossible for the author to believe that the most obvious solution was unknown and other solutions that would only insure the collection of trillions in dollars and debt, in the hands of the few greedy men about whom Woodrow Wilson lamented in his 1919 autobiography, would not occur.
The stated goal of all of these bogus thefts, excuse me, bailouts, has been:
1. the stabilization of the banks
2. the release of credit
3. the salvation of the economy and thus of the body citizenry
To this end, nothing has been accomplished but the absolute theft of $2-4 trillion dollars, depending on how one looks at the promises and obligations of the members of the One Party Two Branch system in DC to their owners in the Federal Reserve and Wall Street. That there has been no substantial change in any of the policies of either the Bush or Obama administrations, only upholds the basic fact of this theft. As I stated in The Six Evils of Wall Street and the Suffering of Humanity, the owners of the Federal Reserve, the masters of much of the hell unleashed upon humanity of the past 120 years, have practiced their art of theft very well indeed. Their last, up to this, most successful enterprise, was the rape of Russia, but even that, in comparison, to the schemes in America, is chump change.
If the goal was actually to accomplish these three points, as stated over and over and preached to the world, then the answer is quite simple. Please note, I, myself, do not subscribe to mass rescues and bailouts but to a strongly regulated, fair and flat inner market (please never confuse this with Free Trade, of which I am neither a prominent, nor lover off, but in fact a staunch enemy). Now the simple an intelligent thing to do, if the order of the day is to spend trillions, is to: one, set a dead line date, after which strict market regulations will go into effect, specifying the minimum criteria of loan generation. Second, investigations into criminal wrong doing should be launched and carried through on all banks involved, on insurance companies, and on scoring agencies. Lastly, all house mortgages, which are primary residences, should have been simply bought out by the government. That is correct, the government pays off the debt in one fell sweep and gives the certificate of ownership to the individual mortgage holders.
In effect, this saves the banks by wiping out their toxic assets (not to mention, all other holders of such debt), saves all the people who are in their homes and provides $500-$3,000 per month in each home owner's pocket to "stimulate" the economy of his or her choice. At the same time, strict legislation keeps this from happening again.
That the brightest minds of finance and the body politic could not or would not see this humble and simple and straight forward answer as the key answer, shows simply that this whole crisis is a rigged game, a final grab of all available wealth to an uber .5% and the 99.5% all be damned. And the reaction of the American public? Well, as I described in American Capitalism, Gone with a Whimper little more then the grumbling and desperate self delusion of a lost, misguided slave dreaming dreams of his uniqueness and freedom. A fool's desperate escape into flights of fantasy and distraction.
That there will never be a revolution or upheaval in the American lands, is beyond a doubt. The American people have neither the whits, the internal fortitude, nor the drive to suffer and sacrifice for their own and society's greatest good against their owners and betters. The ineffectual "tax payer" revolts, known as the tea parties, are nothing shy of a joke and most of the world must be laughing. One French protest march in Paris encompassed more people, in a nation of 1/4th the American population, then all of these hundreds of mini "revolts" combined, even if you multiply their sum total by a factor of 10. Is it really any surprise that Lenin stands proudly, towering in downtown Seattle, while his spiritual forefather sits upon a giant marble monument in DC, a white washed dictator named Lincoln?
To my Holy Motherland, I will say only what I said before: Russia Must Offer the World a Different Ideology and as such, be in the position to receive into her bossom those few of the Anglosphere peoples, those refugees from slavery, who show a will to fight the Marxist enslavement, that Russia herself threw off almost twenty years ago.-Matt Rodinos Blog
Damn right we can.
“This is a very dumb bill that will truly screw over young first-time home buyers. “
its more than that, its a bill that seeks to define the terms under which a person can sell their private property. Further erosion on the value of contracts.
bttt
It will continue to be done as always just now, under le’ tableau (”the table” for those in rio linda).
Very interesting. I agree with most of it, however I think the author underestimates the American citizenry.
It’s time.
I was a Real Estate Broker in the late ‘70’s - the only way you could sell anything was using creative financing and Real Estate Contracts since mortgage rates were 22% - no one could qualify for a mortgage - so we sold everything on contracts with balloon payments due in 5 years when rates settled down.
This is unbelievable - the time has come folks, lock and load.
Is everyone *getting it* now? It’s not just the Dems. It’s all of them. Years and years in DC and they all become corrupt. I think half of them are stupid too. We won’t even recognize this country in 10 years at this rate. Too bad the people here are too lazy to protest like the people in Iran. What time is American Idol on? Who are the finalists?
BRAVO!!! Think we should all send this to every single one of them?
Tell us what you really think.
Seriously, you nailed it. This is the beginning of the outright seizure of personal property, without the “bother” of eminent domain. This is facism pure and simple. Thanks for sharing this...
This ought to put the end to any housing recovery! Since buyers must reasonable be expected to be able to repay the loans, does that preclude illegal aliens as they are subject to deportation and loss of income? Why not spell it out?
The gov is doing its best to make criminals of all of us. With so many insane, intrusive laws, who would possibly comply with them all? I’ve already sent in my last um....”accurate” 1040.
My impression of flippers is that they improved housing for millions of people, upgrading many neighborhoods across the country.
Then, they ending up losing more than most in the RE collapse.
The “worst” of the flippers were just rookies, and still are. Leave it to congress to want to “protect us” from those working to improve housing stock and neighborhoods overall.
Anyone who has worked with some banks and developers knows that, in comparison, we hardly need “protection” from rookie flippers.
PING!
“There’s another clause in this bill that I found absolutely unbelievable. The bill says that if you own rental units and the government decides that you’re at risk of foreclosure, the government can seize your property… before you’re foreclosed on, mind you. Someone wakes up in the morning and decides that you might lose your units to foreclosure, and you are screwed.
You want time to go over that one again? It’s perfectly understandable if you do.
What it said was that the legislation makes it possible for the government to seize your rental units if they deem that you are at risk of losing the property to foreclosure. I assume the intent is to prevent renters from being put out of their rented homes, which is perfectly understandable because everyone knows that it’s only okay to put actual homeowners out of their homes. “
Exactly which sections are these?
I am getting a headache in reading this damned bill. Can someone give me a tip on what sections this article is referring to?
Thanks!
How do you do a real estate transaction UNDER THE TABLE ?
Documents are recorded on the public record and short of that are not official.
Big Brother ping.
I don’t understand how the mod’s can take this down from Breaking News, and change the title to a more subdued one.
?????????
Seriously, please explain this to me on this thread moderator.
?????????
This is something that all FReepers should see, no matter if they are perusing the underwater basketweaving forum here on FR or checking on a sports, political humor etc.
If there was ever a case for the citizens of FRville to see a story on Breaking News, this is it.
Unbelievable.
Just posted this to my facebook page...outrageous...
“Did you really think we want those laws observed?” said Dr. Ferris. “We want them to be broken. You’d better get it straight that it’s not a bunch of boy scouts you’re up against... We’re after power and we mean it... There’s no way to rule innocent men. The only power any government has is the power to crack down on criminals. Well, when there aren’t enough criminals one makes them. One declares so many things to be a crime that it becomes impossible for men to live without breaking laws. Who wants a nation of law-abiding citizens? What’s there in that for anyone? But just pass the kind of laws that can neither be observed nor enforced or objectively interpreted — and you create a nation of law-breakers — and then you cash in on guilt. Now that’s the system Mr. Reardon, that’s the game, and once you understand it, you’ll be much easier to deal with.”
— Ayn Rand, Atlas Shrugged
It’s a blog post. That’s why. Hit abuse and ask another mod to move it back, if you want.
This may seem silly maybe even stupid, but it is essentially what the muslim community has been doing in this country for years (they have some religous objection to paying interest.)
You obviously don’t live in CA, I said I wasn’t sure if it was a fed law or not. In CA, you can only sell through a person holding an FFL, unless it is to a family member. Look that up in CA law and then get back to me.
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