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FLORIDA FORECLOSURE FRAUD BILL - UPDATE

By Richard Zaretsky

Real Estate Attorney with THE ZARETSKY LAW GROUP - Board Certified Real Estate Atty and AUTOMATED LAND TITLE COMPANY

September 13, 2008 03:17 PM

Government can react positively when enough people raise their voice - and the law is clearly against public policy. This post updates my article on the Florida Foreclosure Fraud Bill.

The Florida Foreclosure Fraud Bill, which I reported was written in such a way that borrowers could be barred from access to legal representation has been corrected - but not by the legislature.

The attorney general has certain interpretative powers and expressed them in a letter to John White, President of the Florida Bar in early January.

This clarifies an important aspect of the regulation of "foreclosure rescue" firms proliferating our landscape.

Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660 RPZ99@FLORIDA-COUNSEL.COM - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales

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Rob Arnold

Sand Dollar Realty Group, Inc. - Altamonte Springs, FL

Metro Orlando Full Service - Investor Friendly & F

I wish the Attorney General would also issue a clear exemption to Realtors. I know plenty of Realtors out there that are now scared to work short sales because they are afraid they might be violating the law. I also know at least 1 local attorney that is advising investors to tell sellers in foreclosure "Sorry, I can't help you." This law will end up doing more harm than good unless some changes are made to clean up the language.

Sep 21, 2008 03:44 AM

Anonymous

Let's get real

The bill was passed due to the amount of public abuse by EVERYONE, which also includes lawyers. Everyone has to make a living, but there are many lawyers out there who certainly have the means to provide some pro bono work, especially during the horrific economic crisis our country is going through and they don't. If a personal injury lawyer can work on a contingency basis and try to work out the best deal for his client, why can't a real estate lawyer not. In essence, if you don't get paid up front, then their is no incentive? I am not a personal injury lawyer, but someone that has been in the legal field for many years.

With regard to realtors, I am sure there are a lot of decent individuals who possess a license. However, I live in Miami and personally know of realtors who don't even know how to write or speak English. Nonetheless, have the ability to perform a short sale, which is quite complicated and may ultimately deteriorate the real estate market even more.

I believe that a partial solution to the subject matter is to develop a licensing and specialization in foreclosure rescue programs (both for profit and not). Due to the immense amount of foreclosures and new loan workout programs being re-invented every day, there are very few individuals out there, who really know what they are doing. Defunct real estate lawyers, realtors, mortgage brokers, title companies, appraisers, etc. who were at one point making mega bucks and who knew that people who were buying homes would not be able to afford their homes in the long-run, now feel that they are entitled to hit the new foreclosure rescue market. Today's foreclosure market is too huge and very complex, for just anyone to get involved in without proper licensing and/or education. This includes EVERYONE.

Sep 24, 2008 03:28 PM

Lynn Pineda

eXp Realty - Boca Raton, FL

Real Estate Promises delivered in SE Florida

Richard, I'm unclear as to the requirements of the written agreement. Do you know if the written agreement is needed only if you charge a fee? I do not charge any fees to negotiate a short sale for my short sale listings yet I cannot find anywhere where it differentiates betwwen the two.

Oct 01, 2008 02:01 PM

Richard Zaretsky

THE ZARETSKY LAW GROUP - Board Certified Real Estate Atty and AUTOMATED LAND TITLE COMPANY - West Palm Beach, FL

Florida Real Estate Attorney

There are different scenarios that might include you.

Is there a foreclosure pending?

Is this a transaction where the seller may retain some enquity right?

Is the transaction designed to delay a foreclosure?

Are your services exempted under the Act?

I don't see charging a fee before rather than after makes any difference.

Oct 01, 2008 02:42 PM

Thanks Richard....looks like I need to prepare a written agreement as I'd respond yes to some of your questions.

Oct 02, 2008 05:53 AM

Lynn -

Some issues to consider:

This only applies to a residence - not an investment property.

You need to examine the type of transaction, as you can start out as a consultant and end up as a transaction - two different disclosures.

You probably have some exemptions under some circumstances per the statute relating to your acting as a real estate broker.

The Act is not too easy to understand unless you break it down into its categories and examine it that way. Then it still is not too easy, but at least then it is not overwhelming.

I was just working on some retainer forms for my practice and decided to create two - one for where the property qualifies for a residence (and thus is under the Act) and one where it is investment property and thus is not under the Act. Have the property owner certify in your form that the property is not their residence, if appropriate, and state where their residence is at the time of signing the form.

Oct 02, 2008 11:20 AM

FLORIDA FORECLOSURE FRAUD BILL - UPDATE

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