The Dodd-Frank Law passed several years ago was meant to fix the problems in the banking industry. But in most cases laws requiring thousands of pages tend to inflict pain and rarely solve the problems as intended. I am not a legal expert but I have heard that people using owner financing can go after the lender for up to three years of interest payment if the lender failed to verify the buyer had the ability to pay. Ouch!! So I let these down-on-their-luck folks with new jobs into my property to live with their family and pets. Three years later they claim they did not have the ability to pay when one lost their job and now I owe them three years interest. What??? Who thinks that’s fair?
So I found a link to Bill Bronchick’s post on this. He’s an attorney and investor in Colorado. He shares his incites on the topic from a legal point of view. Its worth 20 minutes of your time.