STOP the 82% Law! JOIN your National REIA!
National REIA
(Real Estate Investors Association)
Last night I attended our local REIA group, which is called the Triad REIA. We meet midway between 5 cities, and join together as Investors & those interested in the Real Estate Market as a whole.
It was really interesting to hear what all is happening in our market and to meet up with other local Investors, Lenders, Realtors, etc to check in. If you are looking to become a part of YOUR Local group, go to www.nationalreia.com and see where your local chapter meets. If you do not have one, START one! It is a Terrific way to be a part of the Real Estate economy and to help build our market one step at a time!
I am going to re-cap last nights meeting so that you can hear a little what it is about...
- Joining the National REIA gives you great benefits and discounts at many large National organizations (Home Depot Supply, Sherwin Williams Paint, up to 80% on certain products at Office Max, Avis Rental Cars, Cybrcollect, DHL, and many MORE!)
- The NUMBER 1 Issue that the National REIA is focusing on currently is: LEGISLATION
- (with 40,000 people behind you...things can change!)
- Our states are trying to pass some CRAZY laws, and in some cases already have!! The 82% Law has already been passed in Maryland, which states that when you BUY a Foreclosure, FIX it up, and SELL, 82% of the FAIR MARKET VALUE goes back to the original owner that got foreclosed on!!!!
- Do you know how HORRIBLE it would be if that were passed in YOUR state?! New York has this bill on the table RIGHT NOW!
"What New Laws Say
Several states, including Illinois (SB 2349), Maryland (SB 761), Minnesota (325N), New York (SB 4744), and Rhode Island (H 7650), have been busy crafting laws to stifle foreclosure fraud. The District of Columbia, Massachusetts, and other legislatures are considering similar legislation.
Many of these statutes are based on the oldest state mortgage fraud law, California Civil Codes 2945 and 1695. Its principal aim is to give home owners the opportunity to cancel a sale that occurs during the foreclosure process. The California law, and most other state statutes that have followed it, requires that a sales contract include a "notice of cancellation," which gives a seller a clear method for stopping the sale of a home within a certain time frame - typically five business days.
The newer laws also try to protect homeowners' equity during foreclosure. They diverge from the California code, however, in their efforts to implement this goal. The California statute prohibits foreclosure purchases that take "unconscionable advantage" of the owner in foreclosure. Minnesota's statute, enacted in 2004, broke new ground by stipulating that home owners who sell while in foreclosure must receive "consideration" that equals at least 82 percent of the home's fair market value. New York's Home Equity Theft Prevention Act followed suit in 2006.
The most restrictive of these new laws is Illinois' Mortgage Rescue Fraud Prevention Act, which took effect Jan. 1, 2007. Illinois lawmakers upped the ante by inserting an additional requirement that limits to 125 percent of the total debt owed the amount a foreclosure purchaser can make when selling the property back to the original home owner. There's no such limit if the home is sold to someone else. Most state laws apply when the documents initiating foreclosure, such as notice of default or notice of pending foreclosure, are issued. However, in Illinois, the law applies to any borrower 90 days delinquent on a mortgage.
These narrow restrictions will almost certainly make it more difficult for legitimate home buyers and investors to purchase foreclosures except through an auction process. If you or your investor clients have plans to purchase foreclosed property already owned by a bank or to buy pre-foreclosures, sometimes called short sales, exercise care.
Consult with a knowledgeable real estate attorney to determine exactly what rules your client must follow to purchase or sell such homes. In some cases, poorly worded laws may be punishing legitimate buyers in an effort to punish scammers. Don't get caught on the wrong side of this equation." Posted from Realtor.com
JOIN your National REIA and become a PART of the SOLUTION to the Real Estate Market!!!
WRITE Your Legislator to STOP this Law & many like it!
Help your Local Economy!
Tracey G. Shrouder
360 Realty
(336) 505-1080
