That was my understanding of this bill, it would only outlaw financing agreements between individuals, not outright cash for property sales, where no financing would be involved. If it outlawed that, even if you had 1 million in the bank you would have to “finance” the purchase, which would be pointless because you could just turn around and pay it off anyway.
"Nearly all conventional lenders apply strict property-attribute standards and our rural communities contain many, many homes that do not exhibit these lender-required attributes. Because the provisions of HR 1728 severely limits the number of private loans offered by a person and/or puts such enormous structural and regulatory burdens on private mortgages, these properties will become virtually unsaleable and will create blight in small rural communities.
Another sad result of this bill would be that, after helping one family member or selling a home with a installment contract, a person would not be able to help with financing for any other family member for 3 years! How is this good for American families?
I can only surmise that the private-lender verbiage is included at the insistence of the conventional lending industry - the ones that got in all the trouble we're in today!
Please don't let H.R. 1728-Mortgage Reform & Anti-Predatory Lending Act pass as long as it applies to private parties!"