General Area in Middleton>Question Details

Susan, Home Seller in Middleton, WI

Is there any chance of finding a builder or agent for a land contract or rent to own situation?

Asked by Susan, Middleton, WI Thu Apr 19, 2012

Help the community by answering this question:


I agree w/ Bill. On July 30, 2008, the Secure and Fair Enforcement (SAFE) Mortgage Licensing Act of 2008 was signed into law as part of the Federal Housing and Economic Recovery Act. The Act was intended to protect borrowers from predatory lenders by requiring a license of anyone extending an offer of credit on behalf of another person or entity.

The Federal Act included a provision that each State must enact legislation in accordance with the SAFE Act's nationwide standards for mortgage loan originators. The Wisconsin Legislature, seeking to comply with the Federal mandate, made substantial changes to Wis. Stat. chapter 224 which governs mortgage banking laws in Wisconsin. Unfortunately, the new law created some unintended consequences for real estate agents and brokers. The most notable of these consequences is that a real estate agent negotiating a real estate transaction on a 1-4 family property where the buyer intends to occupy, and where the seller will be providing a land contract, second mortgage or a purchase mortgage loan for a personal, family or household purpose would need to be licensed as a mortgage loan originator.

In short, the Seller's Realtor may no longer negotiate land contract offers (or offers providing for first or second mortgage financing provided by the seller) on 1-4 unit properties where the buyer intends to owner-occupy, unless the Seller's Realtor is also licensed as a mortgage loan originator in the State of Wisconsin.

In conclusion, I'd highly suggest contacting an attorney and/or mortgage loan originator to further discuss the topic of land contracts.

For more information, please visit

Hope this helps!
1 vote Thank Flag Link Thu Apr 19, 2012
Right, nothing snarky in your helpful response.

Mark is right on the money...just no sense in risking the $500 fine and the ethics class the Realtors Association would make him sit thru if some out-of-state know-it-all saw fit to turn him in.
0 votes Thank Flag Link Thu Apr 19, 2012
Wow, someone actually give an honest opinion on this site... Bill get over it... not everyone is a tool. That guy Mark was giving some good advise. lay off the snarkyness. He did say get a lawyer...
0 votes Thank Flag Link Thu Apr 19, 2012
Wow...a free legal opinion regarding recording a land contract. Pretty thin ice for a Realtor skate on, issuing those kind of statements (on a public forum with name attached no less).

Consider deleting that, Mr W. (my opinion)
0 votes Thank Flag Link Thu Apr 19, 2012
It is very difficult to find these, especially in Middleton. However, I wonder why you would choose land contract or rent to own? I'd love to help you actually purchase a home instead. Most of the people who have come to me wanting a rent to own have ended up purchasing. PM me and we can go over your details confidentially.
0 votes Thank Flag Link Thu Apr 19, 2012
Nope. No Chance. Sorry.
0 votes Thank Flag Link Thu Apr 19, 2012
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