It’s one thing to prevent foreclosure fraud, which I heartily agree with.  However, our elected officials assume that every foreclosure rescuer is evil.  An overwhelming majority of foreclosure rescuers are honest, ethical and hardworking folk who are sincerely interested in helping distressed homeowners.  Sure they make a profit, but isn’t keeping a homeowner out of foreclosure or getting bad loans off of the bank’s books is a good thing.

The reaction from our politicians is to harm the majority with misdirected, ill-conceived legislation meant to target a few bad apples.

This US Senate Bill looks to be spiraling out of control as badly as  the Washington State Bill did.  We (www.reiawa.com) may need letters written on this  one in a few days, but not yet.

Links to the Washington State legislation are at:

03/2008:  HB 2791:  Distressed Property Conveyances
03/2008:  HB 2791: The Bill as it PASSED Legislature
04/2008:  HB 2791: Final Bill Report 
04/2008:  S. 2888:  US Senate Bill, the “Foreclosure Rescue Fraud Act of 2008″

The entire should be read, but here’s an excerpt…

7 SEC. 3. MORTGAGE RESCUE FRAUD PROTECTION.
8 (a) LIMITS ON FORECLOSURE CONSULTANTS.—A
9 foreclosure consultant may not—
10 (1) claim, demand, charge, collect, or receive
11 any compensation from a homeowner for services
12 performed by such foreclosure consultant with re-
13 spect to residential real property until such fore-
14 closure consultant has fully performed each service
15 that such foreclosure consultant contracted to per-
16 form or represented would be performed with respect
17 to such residential real property;
18 (2) hold any power of attorney from any home-
19 owner, except to inspect documents, as provided by
20 applicable law;
21 (3) receive any consideration from a third party
22 in connection with services rendered to a homeowner
23 by such third party with respect to the foreclosure
24 of residential real property, unless such consider-
(page break)
1 ation is fully disclosed to such homeowner in writing
2 before such services are rendered;
3 (4) accept any wage assignment, any lien of any
4 type on real or personal property, or other security
5 to secure the payment of compensation with respect
6 to services provided by such foreclosure consultant
7 in connection with the foreclosure of residential real
8 property; or
9 (5) acquire any interest, directly or indirectly,
10 in the residence of a homeowner with whom the fore-
11 closure consultant has contracted.

If the Bill passes in its current form, it looks as though the FTC will enforce it.

REO’s look pretty good, eh?

To get involved and learn more about the legislation going at the Federal and State levels go to www.reiawa.com and register to be a member.

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