Could anyone shed light on this, it seems ridiculous the way I’m reading it. It seems so vague and ambiguous that almost any bargain purchase of a preforeclosure can fit the mold.
I’m not a lawyer, but I don’t think they mean making a profit after flipping the house. Rather they are reffering to the dealings being honest. Disclosing everything on both sides and in this case not beating the distressed homeowner up. They probably are getting at the fact that given the circumstances one party should not greatly benefit more than the other, rather it should be mutually beneficial.
I’m reading that as potentially considering a seller ‘victimized’ if they sell at sixty cents on the dollar, when they’re a week away from foreclosure. Do you think that counts? Seems you should be able to sell for whatever you want, whenever you want, yet that statute takes into account (to determine if they were victimized), such thigns as:
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The compensation received relative to the risk and the amount of work involved.
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The relative bargaining position of the parties.
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The relative knowledge and sophistication of the parties.
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The timing of the agreement.
Seems like if I’m knowledgable, and just go and close the same day I see the property, when they’re a week away from foreclosure, for 60cents on the dollar, that I’m walking the line here.
many states have these “consumer protection” type statues with respect to people in foreclosure. IMHO, they are written kind vague on purpose to cover a broad range of tactics and schemes.
here in Calif, it section 1695.13 you ahve to watch out for that say you can not take “unconscionable advantage” of a person in foreclosure.
the real issue at hand is if the person you buy from later decides (after the heat of foreclosure is off) that they somehow screwed and decided to hire a lawyer and come after you. Its rare but it does happen. That why you need a good set of documentation applicable for your state. You might also be wise to consult a local RE atty or foreclosure pro to get a sense of what the “yardstick” is dealing with this statue.