I recently moved to NC and I know there are a lot of posts about new bill’s being passed regarding l/o and subject to the existing financing. I was wondering if some people with knowledge of this situation could post about the new laws and what can and cant be done here. I know there are a lot of NC investors here and it might be helpful to have all the information in one place.
Here’s a link to a website devoted to stopping the pending legislation.
It hasn’t been updated in awhile, but you’ll get the idea of what is going on in NC.
In a nutshell, nothing has passed into law yet. Last year, Senate approved it, the House did not. My understanding is that it is on the floor again this year with some more changes (good or bad, don’t know).
Rumors of it passing or not range from a definite going to, no problem to a not going to happen, no problem. I know that that helps :
Short anwer to what this bill is presenting. Basically, it would make it illegal for an investor to buy subject to the existing mortgage then “resell” via a lease with option, contract for deed, or similar owner financing terms, at least doing so without a WHOLE LOT of paperwork and red tape.
Raj
verb,
Here is a link to the bill (NC 725) itself:
http://www.kse50.com/billdatabase/billTexts.php?show=NC+HB+0725
This link is to the status in the state legislature:
http://www.ncleg.net/gascripts/BillLookUp/BillLookUp.pl?Session=2005&BillID=HB725
This bill will outlaw “subject to” transactions in North Carolina unless you are a realtor, or you use a land trust, which is exempted by both Federal law, and NC Senate Bill 679.
Da Wiz
seems to me the bill is a little biased and gives off the impression that realtors may somehow be a driving force behind it, in an attempt to monopolize the real estate market in the area.
on a personal note: it’s seems to me that the idea that “too many people have been hurt by investors who purchased sub-to and then let the loan default” may be a little far fetched, i moved here from california (where there is a SIGNIFICANTLY larger amount of investors, and by default some who MAY be conducting business in an unprofessional manner)
i just don’t see the volume of investors here in NC as i did in CA so that leads me to believe that the “reason” for implementing the bill into law might be a tad bit exaggerated or if so wouldn’t it be safe to assume that a more populated state with far more investors would have a higher probability of this scenario therefore implementing a similar bill themselves? yet that’s not the case in CA for example.
well we’ll just have to see what happens.
-aimee
HAHAHAHA!!! in doing some more research on the topic my hubby came across some information which divulged the name of the entity that proposed the bill…DRUM ROLL PLEASE… TAR HEEL REALTORS.
<<seems to me the bill is a little biased and gives off the impression that realtors may somehow be a driving force behind it, in an attempt to monopolize the real estate market in the area.>>
Ya think??
Keith
There are now over 1 million realtors in the United States and each year the percentage of homes that sell “FSBO” increases, last year to over 25%.
Smaller pie + more realtors = a strong realtor lobby pushing for more anti-investor legislation. Why let investors do a “subject to” when we can require a real estate license to do it? It’s just part and parcel of the corporate takeover policy that our resident in the White House is pushing so strongly.
Da Wiz