It appears that the Wisconsin Legislature snuck their version of the SAFE Mortgage Licensing Act into the 2009 budget, effectively making seller financing illegal for 1-4 family buildings. Exceptions to this rule are sellers who are owner occupants, people who hold an expensive mortgage broker license and a few other limited exceptions that will not effect most of us.
The effective date of the law was 1/1/2010. Yet nearly seven months into it none of the real estate pros I spoke to knew about it.
I accidentally stubbled upon the WI law while researching the HUD proposal to prohibit seller financing. Low and behold on one of the HUD pages WI and TX were listed as states that had enacted their own version of the Safe Mortgage Act.
