Lawmakers target seller-financed homes
Lawmakers target seller-financed homes
The Consumer Financial Protection Bureau (CFPB) is investigating some larger investors that offer seller financing in real estate deals. It’s accusing them of abusing the practice by evicting buyers for missing just a single payment or selling homes at the end of the agreements that are in complete disrepair.
Legislators in three Midwestern states – Ohio, Illinois, and Michigan – are targeting abuse of seller-financing deals with new legislation that aims to better protect buyers in these contracts.
In Ohio, lawmakers introduced a bill that would require property owners to solve any housing code violations and pay outstanding fines before selling the homes to buyers in contract-for-deed transactions or in rent-to-own leases.
Illinois enacted a law that strengthens disclosure requirements in seller-financed deals that takes effect in January 2018. Under the new rules, for example, buyers get more time to come up with money for a missed payment to avoid the problem of quick evictions.
In Michigan, lawmakers are working on a bill that would address similar abuses with contracts for deeds. In Detroit, homes sold on contracts for deeds are outpacing the number of homes sold in the city with traditional mortgages.
Earlier this year, a New York Times series of investigative articles highlighted some dangers with contract-for-deed transactions. Reporters uncovered several national firms that sold homes under seller-financed deals without fully disclosing that some properties had housing violations or that some of the properties had thousands of dollars in unpaid taxes and other fees. Some homes sold had even been slated for demolition.
Source: Florida realtors
-
New$475,000
Cape Coral
Courtesy of LPT Realty
3 BEDS2 BATHS1821 SQFTShare this Property -
New$419,990
Cape Coral
Courtesy of MVP Realty Associates LLC
4 BEDS2 BATHS1830 SQFTShare this Property -
New$875,000
Cape Coral
Courtesy of John R. Wood Properties
4 BEDS2 BATHS2318 SQFTShare this Property -
New$499,900
Cape Coral
Courtesy of Barclays Real Estate Group 1
3 BEDS2 BATHS1800 SQFTShare this Property -
New$580,000
Cape Coral
Courtesy of Mamba Realty LLC
4 BEDS2 BATHS1828 SQFTShare this Property -
New$425,000
Cape Coral
Courtesy of RE/MAX Trend
3 BEDS3 BATHS1882 SQFTShare this Property -
New$378,000
Cape Coral
Courtesy of Real Estate Solutions Today
3 BEDS2 BATHS1357 SQFTShare this Property -
New$305,000
Cape Coral
Courtesy of Beycome of Florida LLC
3 BEDS2 BATHS1983 SQFTShare this Property -
New$1,239,000
Palaco Grande
Courtesy of Lori Gilmore Real Estate LLC
3 BEDS3 BATHS2451 SQFTShare this Property -
New$1,350,000
Cape Coral
Courtesy of Nexthome South Pointe
4 BEDS3 BATHS2295 SQFTShare this Property -
New$429,900
Cape Coral
Courtesy of MVP Realty Associates LLC
3 BEDS2 BATHS1734 SQFTShare this Property -
New$475,000
Stonewater
Courtesy of Epique Realty, Inc.
3 BEDS2 BATHS1816 SQFTShare this Property