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Author Topic: Private Lending Dead In Indiana and the Safe Act  (Read 2122 times)

Offline Jeremiah(IN)

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Private Lending Dead In Indiana and the Safe Act
« on: August 26, 2010, 09:46:28 PM »
I was informed tonight that lending money in Indiana secured by residential real estate, 1-4 units, is illegal unless you have a loan originators license. Think about this...you want to loan 20k to your kid to buy his first house...can't it's illegal according to Indiana's Safe Act. There is already one attorneys office that will NOT write a note and mortgage on residential real estate. How long before many more follow suit?

Now on a positive note they have excluded Land Contracts.

What does your state law say about the "Safe Act"?


I pegged this to the top..., to show and hopefully help show the falsehoods being spread around about the new Safe Act....follow the additional posts below.  Research your own State Statues Too!!!!   -tyler
« Last Edit: September 12, 2010, 07:38:43 PM by tyler »

Offline tyler

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Re: Private Lending Dead In Indiana and the Safe Act
« Reply #1 on: August 27, 2010, 06:36:05 AM »
I'm not argueing against it; however, Show me proof -better yet show yourself proof.   We need answers in black and white print from the authority -you know how it goes...all these guru's don't really know what they exspouse.

I have seen alot of people (even our local reia) claiming this and that and they are wrong.

Google your IN State Statues start looking throught the mortgage laws.  2 parts to this: 1. You'll want to look up the private seller/financing part.  2. You'll want to verify consumer owner occ lending vs. lending for business/investment.

Not saying what you heard was wrong -just saying that 95% of the mouth's that open about this subject are not really correct in what carry's out with the carbon monoxide.

I'll be glad to give you my interpretations of statues.  you start with providing links though and theory's/thoughts.

btw....Each State has the ability to use Safe Act how they want....there is alot of back channel thought that this will ease up with private seller financing over the next 1-2 yrs.
« Last Edit: August 27, 2010, 08:12:46 AM by tyler »
Tyler -The REAL-Estate Advisor
www.CharlotteREblog.com

Offline Jeremiah(IN)

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Re: Private Lending Dead In Indiana and the Safe Act
« Reply #2 on: August 27, 2010, 02:21:54 PM »
Tyler I may have found something in # 2 and or 3 if the buyer is purchasing as an investment/business:
www.in.gov/legislative/iac/T07500/A00090.PDF

750 IAC 9-2-5 Exclusions
Authority: IC 24-4.4-1-101
Affected: IC 24-4.4; IC 24-4.5
Sec. 5. This article does not apply to the following:
(1) Extensions of credit to government or governmental agencies or instrumentalities.
(2) A mortgage transaction in which the debt is incurred primarily for a purpose other than a personal, family, or household
purpose.
(3) An extension of credit primarily for a business, a commercial, or an agricultural purpose.

It was an attorney that studied the safe act that informed me that loans secured by residential RE is now illegal. Thanks for not letting me give up on this.

Offline tyler

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Re: Private Lending Dead In Indiana and the Safe Act
« Reply #3 on: August 27, 2010, 09:14:48 PM »
See..... Thats just one bit of info.  Good News Huh!!!    ;D    -See Ol' McCracken whipped the socks of your attorney's...ask him were to send my invoice... and heck wait and see if we can find that you can owner carry to an owner occupant in your State too....   oh..., and next cover my back at the other site...remember this dog tried to teach'm something but the blinders were on.  

Now..., I don't have time to follow your link at the moment but does it take you to the whole Mortgage Laws for your State?  Bet I can find some exclusions and/or limits (which means you can owner carry to owner occupant buyers too) in those statues too...


I got one better for ya!!!!  Dyches Boddiford, a mentor of mine, is hosting to webinars (free) this Wednesday....  see below for links.  He's good and i doubt there will be any upsell.  I will probably be apart of it (listening -not leading).  Btw...what he refers to below is 3 owner financing to owner occupants per year -nothing to do with lending on investment property.

NEWS ON THE SAFE ACT!
 
There is good news on the SAFE Act, but it could be better. As
part of the Dodd-Frank Bill, owner-financing can be done on up
to three properties per 12 months. This is good news, but for
many of us, we need a larger exemption.
 
Well, all is not lost.

 
And I want to walk you through what you can do to essentially
carry back financing on ALL the properties you want!  
 
I could charge for this information, but I am going to give it
to you as loyal subscribers at no charge in a 30 min. to 45 min.
webinar next Wed., September 1st when it will be presented twice.

 
Free Webinar:  How to Unlock Owner Financing Under the S.A.F.E. Act!

September 1st, 5:00 pm EDT, Click Here to Register

 
Replay:  How to Unlock Owner Financing Under the S.A.F.E. Act!
September 1st, 9:00 pm EDT, Click Here to Register
 
DO NOT MISS THIS FREE INFORMATION! Currently, these are the only
times this information will be presented.


HHMMMMM   >:(   Guess I can't copy/paste his links and he's not advertising it to his website...maybe invite only to existing clientele....  let me look into...if I can't get an open invite for all -I will certainly give the feedback.
« Last Edit: August 27, 2010, 09:18:16 PM by tyler »
Tyler -The REAL-Estate Advisor
www.CharlotteREblog.com

Offline tyler

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Re: Private Lending Dead In Indiana and the Safe Act
« Reply #4 on: August 27, 2010, 10:15:40 PM »
here's another thing...i spent a few minutes on your link...looks like you can help out family... read the whole link.  Believe your State Mortgage Statutes ( i could be wrong -need to review further) refer to the National Law for owner/seller financing to a buyer (that is going to be an owner occupant)...

Dyches refers to the 3 loans/per year... because i think that's what the national regulation allows unless your state has specific language saying otherwise (ours is 5/yr.).  Again, i could be wrong so lets dig more.
Tyler -The REAL-Estate Advisor
www.CharlotteREblog.com

 

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