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Re: [tips_and_tricks] Re: Borrowers must sign IRS Form 4506-T

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  • Jake
        It is there and available as an escape in the UCC for a reason. People should know it and use it whenever signing for a driver s license, or any kind
    Message 1 of 6 , Sep 27, 2010
         > It is there and available as an escape in the UCC for a reason. People should know it and use it whenever "signing" for a driver's license, or any kind of registration. A reservation of one's rights is hardly taking things out of context.

      1st, the UCC is not a blanket you can throw over everything, although many people try.  2nd, I don't know about Illinois, but I do know that if you try to add "UCC 1-308", "Without Prejudice" or the like when signing a N.C. driver's license, they'll tear it up, throw it in the trash, print out another one & tell you to write nothing but your signature on it.  They were doing that over 15 years ago.

           > Since when is a reservation of one's rights making up rules, rules that have been put in place for a reason.

      The problem is the all-to-common idea that if you don't like this or that set of rules, you can make up their own.  Also, contracts require that you relinquish some right(s) & you can't "reserve" rights you don't have.  A case I often cite, Trustees of Dartmouth College v. Woodward, 17 U.S. 518, 656 (1819) contains a discussion on what is / what is not a contract & the contract law principles in that case stand to this day. Excerpt (emphasis added):

         "1. What is a contract?  It may be defined to be a transaction between two or more persons, in which each party comes under an obligation to the other and each reciprocally acquires a right to whatever is promised by the other. Powell on Cont. 6.  Under this definition, says Mr. Powell, it is obvious that every feoffment, gift, grant, agreement, promise, &c., may be included, because in all there is a mutual consent of the minds of the parties concerned in them, upon an agreement between them respecting some property or right that is the object of the stipulation.  He adds that the ingredients requisite to form a contract are, parties, consent, and an obligation to be created or dissolved; these must all concur, because the regular effect of all contracts is, on one side, to acquire, and on the other, to part with, some property or rights, or to abridge or to restrain natural liberty, by binding the parties to do, or restraining them from doing, something which before they might have done or omitted."

         > In the city if Chicago, it is near impossible to get into many buildings downtown without a driver's license, state ID, or passport. I have been denied access to a few by state police, ready to make an arrest for anyone not cooperating.

      The only gov't. buildings I know of here which require such forms of ID to enter are the federal courthouses.

           > Jake, I am sure you mean well, but with so many people who cannot even afford a down payment, telling someone if they cannot afford to pay cash up front, then tough, is unreasonable.

      I need to re-phase my comments on that; although I did pay cash for the last piece of property I bought, I bought 2 houses on private contract in the past, but I've NEVER had a mortgage & wouldn't even consider getting one.  The contract purchases were along the lines of a "rent to own" or "lease to own" arrangement, with no bank or interest involved.  Make the payments until the end of the term of the contract & it's your house - don't make them & it reverts to the individual you were buying it from, but you have no "equity".  However, if you're going to move, you can sell the property on contract to someone else, just as long as you can pay off any balance you owe.

      An uncle of mine moved 5 times over his working life, he always did that & he'd make a contract to sell before he moved.  And when he retired, he had payments coming in from the last 3 homes he'd lived in, which made a nice "retirement income".  And if a buyer quit making payments, he could re-possess the house & sell it to someone else.

      Regarding the down payment comment, if you can't afford to make it, you can't afford to buy the property in the 1st place.  If you can find a contract arrangement, know that you can afford the payments & the total amount, that's one thing, but taking out a mortgage with little or no down payment is one of the reasons for the housing market "bubble" bursting - people trying to buy more house than they could afford - and the mortgage companies encouraging them to do it.

      Rental property is down in "value" now too & it's much wiser to rent what you can afford & save up for a future home purchase.  That used to be common too - my Dad did it, my Uncle did it, I did it, my best friends did it, etc.

      And let me give you an example of the mortgage trap that I know about personally as I tried to help the folks out.  The foreclosure was delayed about 3 years, but they ended up losing the house they'd lived in for 21 years.  At the time it was appraised for $195,000 & they still owed $165,000, so after 21 years of paying mortgage payments, they only had $30,000 of "equity" & they could have rented a bigger house for less than their mortgage payment was.  They'd paid $335,000 over the years (interest ate 'em up) & if they'd been able to pay the mortgage off, they'd have paid a total of 1/2 million $$$ - for a house worth less than $200,000.  How stupid is that?

         > Having your own rules for life are fine, but to impose them on others, however well they may work for you, simply does not work for most people.

      I'm not imposing "my" rules on anyone, but I am saying if you don't like or can't afford the terms / conditions of a contract, don't enter into it.  If you do, the only one you have to blame is the one you see in the mirror.  And anyone who says taking out a mortgage is the only way to get a decent home to live in just hasn't looked into other alternatives & they do exist.  It may take quite a while to find what you want @ a price you can afford, but with "due diligence" you can.  And if you want to avoid such things as an "IRS Form 4506-T", you can do that too - private contracts are still legal.

      ~ ~ ~

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