I just received another phone call from the Alabama Banking Department. They are aware of all the uproar over the seller financing issue, and are reaching out to industry trade groups such as the Alabama Association of Realtors to work out some of the gray areas and see if there might be some room for latitude. Everyone is mindful of the big bad federal government, though. If HUD decides we are not “in compliance” with the federal laws, then the federal government would have the right to step in and take over the licensing issue and its enforcement in Alabama. Nobody wants that to happen.
Let’s let this rest for a few days or weeks, and see what our state government agencies and our industry trade groups can come up with in the way of a little flexibility on these issues.
If you need to do a seller financed transaction in the meantime, I don’t think anything bad will happen to you because of the lack of a license. BUT, remember those issues I told you about previously, regarding Truth in Lending and other disclosures. There is NO flexibility on those matters.