I have not seen a lot of discussion on this topic. Subject to investing?
Could the end be near for this type of investing or is there a work around to the new law that may be passed.
For those that are not up on the law that is in the Senate now awaiting a vote the biggest change is that any subject to deal will require written approval from the lender. We all know most lenders will not give written approval.
So, my question is, has anyone thought about work-around’s to this? Will this type of investing exit our creative financing bag or can we do an owner financed deal (Wrap-Around) and make it work…
Just opening this up for discussion… I would like to hear everyone’s thoughts on this subject please.
CS/HB 643 - Foreclosure Fraud
GENERAL BILL by Jobs & Entrepreneurship Council and Ford (COSPONSORS)
Ambler; Brisé; Bucher; Bullard; Chestnut; Gibbons; Gibson, H.;
Gonzalez; Hasner; Homan; Hukill; McKeel; Patronis; Reagan; Richardson; Richter;
Roberson; Schenck; Schultz; Weatherford; Zapata
Foreclosure Fraud: Provides legislative findings & intent relating to need to protect
homeowners who enter into agreements designed to save homes from foreclosure;
prohibits foreclosure consultants from engaging in specified acts or failing to perform
contracted services; requires all agreements for foreclosure-related services &
foreclosure-rescue services to be in writing; specifies required information in written
agreements; requires statements in written agreements to be in uppercase letters of
specified size; provides homeowners with right to cancel agreement for specified
period & specifies right may not be waived; provides homeowner has specified period
during which to cure defaults; requires equity purchasers to verify homeowner’s ability
to make payments under repurchase agreement; provides for rebuttable presumption of
specified transactions being unconscionable; provides that foreclosure-rescue
transactions involving lease option or other repurchase agreement create rebuttable
presumption that transaction is loan transaction & conveyance from homeowner to
equity purchaser is mortgage; provides for limited application of presumptions & for
exclusions; provides that persons who violate specified provisions commits unfair &
deceptive trade practice; repeals provision relating to violations involving individual
homeowners during course of residential foreclosure proceedings.
Effective Date: October 1, 2008
CS/CS/SB 992 - Foreclosure Fraud [EPCC]
GENERAL BILL by Judiciary and Banking and Insurance and Fasano (COSPONSORS)
Gaetz; Atwater; Lynn; Baker
Foreclosure Fraud [EPCC]: Prohibits a foreclosure-rescue consultant from engaging
in certain acts or failing to perform contracted services. Requires that all agreements for
foreclosure-related rescue services and foreclosure-rescue transactions be in writing.
Requires that an equity purchaser verify the homeowner’s ability to make payments
under a repurchase agreement. Provides price limitations for repurchase transactions,
etc.
Effective Date: 10/01/2008
Without having read the new legislation, it appears from your summary that Florida has passed a law similar to what has already been enacted in other states.
Thank you for showing the bill relating to Foreclosure Fraud in Florida.
Not entirely sure what this has to do with Subject To investing, as I do not deal with people in Foreclosure. Always marketed to sellers before they were put into this situation, this way the playing field was level and I did not have to deal with self-denial from the majority of foreclosure folks.
Besides there is no re-purchase agreement involved when taking over a property using the Subject To method at least not the way I purchase a property, as required per the statute’s requirements.
I have read similar laws. They appear to be aimed at people/firms who claim they can save the home when they actually have no intention of doing so. I don’t think any honest, legitimate investor has anything to fear from these laws so long as they comply with any disclosure requirements.
There is this stupid marketing strategy some investors are using where they claim to be foreclosure rescue service/consultants in order to get a hold of the pre-foreclosure leads and once in, convince them to sell.
People should fix their marketing problems to get more qualified leads, not resort to fraud and lies to get leads.