Are Contract for Deeds DEAD in INdiana and Kentucky?
The Federal government passed a law sometime in 2008 called The Safe Act. Among other things this Act gave the States two years to enact their own or adopt the new Federal Law.
Indiana adopted the Federal Law by Rule sometime in 2009.
Since that time it appears it has been unlawful to sell Real Estate on Contract for Deed unless you meet some very stringent requirements.
1) You can sell to a Family member via Contract for Deed.
2) You can sell your Primary Residence via Contract for Deed.
3) You must be a licensed Mortgage Broker in order to offer Mortgages in Indiana or Kentucky if you do NOT meet the first two requirements listed above.
This new Rule in Indiana will make it therefore unlawful for a Builder to sell homes built via Contarct for Deed as many Builders have done in the past to help people who could not otherwise purchase a home.
This Rule will affect Investors who purchase, the renovate homes to place back into the marketplace.
What do you think about this rule?
What do you know about it?
If you are working with a Contract for Deed it might be a good idea to seek the advise of an Attorney.
This will cause more foreclosures. It will shut out even more buyers from the market. Owner financing has been around for centuries, eliminating it will have many unpredictable reprecussions.
I don't think I like it at this point... this law is in the process here in Texas. I think they have postponed it for a while but it is coming.
Dave - you are right! But I will wait and see.
What is the drive behind this new law? Anyone?
Bob:
Just wanted to stop by and wish you a Happy Easter