Global Direct Sales v. Krowne, Civil No. 08-02468 (D.
The federal department of Housing and Urban Development has had a long-standing rule barring home sales where the buyer’s down-payment is funded by the seller. In 2007, HUD adopted new rules (72 Fed. Reg. 56002, 56007 (2007), later stayed by the District Court for the District of Columbia) prohibiting efforts to avoid this rule by sellers giving money to a non-profit organization, which in turn gave a sum a bit less than the amount as a gift to the buyers. Global Direct Sales then partnered with the Penobscot Indian Tribe in
Links and Court Documents:
Case information and documents: http://ml-implode.com/viewnews/2008-10-09_FHASellerFundedDownpaymentOutfitSuesMLImplodeInEffortToSilenceCr.html
Case information and documents: http://www.citmedialaw.org/threats/global-direct-sales-llc-v-krowne