Re: Equity theft prevention nonsense … - Posted by Frank Chin
Posted by Frank Chin on April 25, 2007 at 08:39:48:
If it was foreclosed on by the bank, becomes an REO, and goes to auction, or sold directly, and it went for $100,000, the overage of $50,000 goes to to the homeowner.
In reading thru complaints against foreclosure rescuers, what they do have homeowners sign waiver agreements transferring the overage to the “rescuer investor”.
Most of the rescuers pay the homeowner something during the rescue, sometimes very little, but not the entire equity, and certainly not before they sell it.
The NY State Home Equity Theft Prevention act requires the investor to pay at least 82% of FMV from what I can recall, and exempts banks, family members from certain provisions.