Important Communication from SJI’s Government Relations Committee!!!
As you may or may not know, Senate Bill 2699 and Assembly Bill 4214 are two (2) bills currently pending in the New Jersey State Legislature which if passed, will have a MAJOR impact on each and every real estate investor who conducts business in the pre- foreclosure market by purchasing houses from financially-distressed sellers. Hence, if you currently purchase houses in which the homeowner has already received a Notice of Default (NOD) or you plan on getting involved in this marketplace, your business model and means of generating income will be SEVERELY, if not COMPLETELY, restricted. Here are just a few of the points included in these bills:
You will NOT be able to purchase a house that is in pre-foreclosure for less than 82% of the current Fair Market Value.
Real Estate Investors will fall under the jurisdiction of the Department of Banking & Finance.
You will then be classified as a Debt Adjuster and/or Debt Consultant.
You will now be required to be licensed with the State of New Jersey in order to conduct business.
In addition, you may be required to be bonded with the State of New Jersey in order to conduct business.
These bills provide for a two (2) year period from the date of original purchase whereby the initial transaction could be legally reversed/overturned in a court of law.
These two (2) bills will also have an adverse affect on those who conduct wholesale transactions, rehab projects, lease options, and those landlords who will not rent to those applicants who have a foreclosure appearing on their credit rating. Having said all of this, we STRONGLY feel that it is IMPERATIVE that we, as Professional Real Estate Investors, work diligently and quickly to defeat or amend these restrictive bills, so that they do NOT have the unintended consequences that they already had in other states, like New York.
South Jersey Investors, Inc, in conjunction with Metropolitan REIA and Garden State REIA, have committed to hiring an experienced lobbyist who has already been VERY effective in delaying these bills from being presented for vote and thus, allowing us to be heard by presenting our objectives to the Senators and Representatives responsible for sponsoring these bills. In addition, this will afford us the time and opportunity to formally educate these legislators with regard to the way in which we conduct our real estate investment businesses both from a legal and ethical perspective.
However, this lobbyist is going to cost each REIA organization a substantial amount of money over the course of the next few months. Therefore, we are calling on our members to rise to the occasion and donate money specifically intended for the purpose of employing this lobbyist to defend and protect our interests at the state level of government.
I’m not asking for money, I’m a member of south jersey investors and I just copied it out of my email and posted it on here because personally i find it to be a tragedy. What if this happened across the rest of the country? that would be horrible!
How is this going to affect tax deeds/liens in that state? What changes will be made to tax deeds/liens? If someone invests money to purchase a tax certificate with the NJ govt to pay an owners deliquent taxes, and the owner ends up not paying the deliquent taxes by the redemption period, what happens then? I think something is being overlooked here.
:cool THANK YOU ERIC3 this is what i said in my first post to this as well it will be a blow to the scammers and theifs in our business !!!
BUT it may hurt some legit people as well as they may get a fine or two as they may be in a shady area on some things /// but this would bring they round fast and in a good way !!!
LAWS are good to keep honest people honest /// but the scammers will all ways find a way !!!
AS i have found more and more people think all of us in this business are theifs and scammers /// even some newbies comming in who want a lot for nothing be it help information /// and or a deal handed to them by one of the old timmers in the business/// or they want to do every thing and put no money in any way in to the learnning or deal
OKAY my rant is over for now but it is true just think about it
Please PM and tell me how I can donate. I am dismayed by the short sightedness of the other posters. Yeah it is good for preventing people who scams people, however how many foreclosures won’t be stopped because of this. 82% FMV, according to whose standards, I can almost guarantee John Investor won’t be deciding what that number is.
Not to mention, once you factor in repairs, holding costs, marketing costs, and other soft costs with that 82% that will wipeout the entire niche of foreclosure investing.
Then someone can come along after 18 months and possibly reverse the whole deal??? And you guys are okay with that?
I know what the problem is, you guys aren’t from New Jersey and don’t understand the fact that if this passes, it could potentially set a precedent. I am in Florida, born in Ohio by the way. What I have noticed on this board, and in live in general, is that very few people understand how connected everything really is.
People don’t understand the elementary principles of economics. People don’t understand what Real Estate as to do with the Stock Market or what a law passed in New Jersey has to do with the laws of Texas. It all matters, and it is all related, and if it affects Rexsinga, if affects us all.
:cool I want to ask hwould how long have you been in the real estate business??? I my self have been in the business now for over 12 years and do understand more than you may know ///// as well there are people on this form who have even more time then me it would be good to listen to the words of wisdom
What would this do to short sales? The only way to buy an overleveraged property from a homeowner in distress is to negotiate the debt. If you can’t buy for less than 82% of FMV no matter how much is owed on the proerty, then short sales won’t make sense.