Posted by Tom NH on March 21, 2006 at 05:16:00:
Isn’t a monthly interest rate of 2%, 24% annually?
Is 2% per month financing legal? - Posted by Sara_CA
Posted by Sara_CA on March 17, 2006 at 11:12:19:
24 percent a year.
This is for the sell of a lot in the California desert.
Is this high interest legal?
Thanks in advance.
Re: Is 2% per month financing legal? - Posted by The Frisco Kid
Posted by The Frisco Kid on March 18, 2006 at 18:03:00:
Sara
Maybe yes, maybe no. Yes if seller carryback, yes if arranged by a real estate broker. You need to provide more info for a more specific answer.
2% a month is legal if seller carry back. - Posted by Sara_CA
Posted by Sara_CA on March 19, 2006 at 03:57:42:
Thanks for your response.
I bought this Calif desert land 2 years ago. The seller offered me 100% owner financing at 2% a month. But I opted for all cash purchase. Now 2 years later I am selling it myself, I wondered if I can also offer 2% a month owner financing to my buyer for 2-3 years until he builds. California desert land is still very hot. My buyer will still make a lot of money. But if he fails the payment, I will foreclose and get the land back.
Thanks again. Would appreciate anybody with additional comment?
Re: 2% a month is legal if seller carry back. - Posted by usury laws
Posted by usury laws on March 21, 2006 at 19:03:25:
24% may be an OK rate for an unsecured credit card but not for a secured loan on a property.
You might want to read about HOEPA–Home Ownership and Equity Protection Act of 1994 and also check out the usury laws for your state.