Makes sense? I dont think so… - Posted by Marc Donovan
Posted by Marc Donovan on June 16, 2007 at 05:48:19:
This is now a law in FL. FS 501.2078
“in the case where the investor BUYS the property BEFORE the sale, he/she is doing the service in that they help the homeowner”
This is exactly what this law prevents. See for yourself:
© “Victimize” means any course of action intended to dupe, swindle, or cheat a homeowner subject to a residential foreclosure proceeding. The factors that a court shall review when determining whether a course of action is victimizing a homeowner are:
The compensation received relative to the risk and the amount of work involved.
The number of homeowners involved.
The relative bargaining position of the parties.
The relative knowledge and sophistication of the parties.
Representations made in the inducement.
The timing of the agreement.
(2) Any person, other than a financial institution as defined in s. 655.005, who willfully uses, or has willfully used, a method, act, or practice in violation of this part, which method, act, or practice victimizes or attempts to victimize homeowners during the course of a residential foreclosure proceeding, and in committing such violation knew or should have known that such conduct was unfair or deceptive, is liable for a civil penalty of not more than $15,000 for each such violation.
Basically leaves it all up to the judge and jury to decide. That’s not a good law. It is way too vague. Until there are some test cases that make it through appeals, we have no idea how the court will go on this.
Best course of action is to ignore homeowners in foreclosure. The end result of this law is that folks in foreclosure can no longer sell their property because nobody wants to expose themselves to this law. So there are no offers and the bank gets the equity.
Guess who lobbied for this law? The banking industry. Notice the exception above “Any person, other than a financial institution as defined in s. 655.005” This says that it OK for a bank to swindle and cheat a homeowner. How could Jeb Bush sign this and sleep at night? We will never know.