The new Florida Foreclosure Fraud Law FS 501.1377 - arriving statewide on 10/1/08

By
Real Estate Agent with Sand Dollar Realty Group, Inc. BK627826

That's right. This new foreclosure law goes into effect on October 1, 2008. That's just 8 days from now. 

This controversial Foreclosure Fraud Law a/k/a House Bill 643 a/k/a Florida Statute 501.1377 is coming at Florida real estate investors, home buyers, brokers and sales associates, title companies, home inspectors, short sale mitigators, and similar companies like a giant freight train.  If any of the above people are you and you haven't read up on the new law, you had better start getting very familiar with it.  Here is the link to the Florida Statutes for you.

     I've already elaborated on the law many times over the last several months, so I am not going to do it again.  At the bottom of this article, I referenced some links to my previous blogs so that you have some reference.

Just so everyone knows what steps I am taking so far, here goes...  I have informed all my Realtors that if they are taking a listing with a property that is or soon will be in foreclosure, and they need to get the seller to agree to do or to sign anything except for a standard listing agreement with a short sale addendum that they also need to get the disclosure form signed and stick to the deadlines in the law.  If the seller's lender or lienholder comes back with any funky, non-standard requirements for the seller and the seller still wants to move forward with the deal, then that is enough to warrant the disclosure as well in my opinion.

As several local real estate attorneys have already spoke about (and I blogged about -- see articles below), there are many "gray areas" in this law.  So until those gray areas get cleared up, there is no need to take a risk on our part.

Since the Florida Association of Realtors has not come up with disclosure forms for us to use, I have taken it upon myself to provide a form for the "Foreclosure-Rescue Consultant" disclosure to our firm's many Realtors and sales associates.  You can obtain this form at our company's website, however it is protected so that only our sales associates can access it. (Hey, we are always hiring new Realtors, so give me a call if you want to move your license over.) 

I have yet to come up with a form for the "Equity Purchaser" because from reading the Florida Statute 501.1377, that form is a little more complicated.  Realtors would not fall into the Equity Purchaser category anyway, only investors and home buyers. If you are an investor or home buyer and need help with the disclosure, there are some websites that sell the disclosures or you could contact an attorney and have them draft it for you.  That is about the best I can offer to you at this point.

Here are the links to previous articles.  Make sure you are following the law because these politicians are not playing around when it comes to Florida foreclosure rescue scenarios. The real estate industry is really under the microscope right now.

Florida's brand new foreclosure fraud law - the good, the bad, and the ugly 

Florida's Foreclosure Fraud law HB 643, confusing to say the least 

Some official opinions on Florida 's Foreclosure Fraud Law FS 501.1377 

More official opinions on the Florida Foreclosure Fraud Law FS 501.1377 

Florida foreclosure fraud law update FS 501.1377 - meeting with the Attorney General 

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(Copyright © 2008. Sand Dollar Realty Group, Inc. All rights reserved.)

Rob Arnold - Your full service and investor friendly Realtor in Orlando and Central Florida.

ABR, CPL, CRB, GRI, Managing real estate broker, Licensed mortgage broker, Notary Public

407-389-7318 / 1-877-389-7318    www.SDRhouses.com/   www.WeBuyHousesFlorida.com/

Learn to invest in Central Florida real estate and Orlando real estate. Investor mentoring and counseling available. We sell properties, list properties, and we buy houses cash throughout the Central Florida & metro Orlando area.  

I also provide flat fee MLS listings, For Sale By Owner, and menu-based services in most parts of Central & South Florida, the Space Coast, and the Treasure Coast including Orlando, Winter Park, Maitland, Ocoee, Winter Garden, Apopka, Altamonte Springs, Casselberry, Longwood, Winter Springs, Oviedo, Lake Mary, Sanford, Deltona, Debary, Deland, Mount Dora, Eustis, Clermont, Kissimmee, Winter Haven, Lakeland, Tampa, Sarasota, Bradenton, Miami-Dade, Fort Lauderdale, West Palm Beach, Port Saint Lucie, Melbourne, Daytona Beach, Ocala, Gainesville, Volusia, Brevard, and more.

Florida foreclsoure, Central Florida foreclosure, Orlando foreclosure, Florida short sale, Orlando short sale

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Rainmaker
1,135,756
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Hi Rob, Thanks for posting this. I have yet to do my homework related to this new law. It sounds like I need to get on it!

I hope all is well with you.

Sep 23, 2008 12:18 PM #1
Rainmaker
510,494
Chris Brown- Florida Home Loan Specialist | Certified Mortgage Planner
Chris Brown | Certified Mortgage Planners - Orlando, FL
Chris Brown 407.367.2974

Rob, you are a wealth of wisdom my friend.  lets talk about being a guest contributer on my personal blog.  It is quickly becoming more than I can handle on my own.  SHoot me an email or call me.

I wont spam your post here with the URL... you know it.

Chris the implementer

Sep 23, 2008 11:40 PM #2
Rainmaker
913,876
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

Chris - I can help out here and there as long as it doesn't take up too much time.

Sep 24, 2008 02:38 AM #3
Rainmaker
510,494
Chris Brown- Florida Home Loan Specialist | Certified Mortgage Planner
Chris Brown | Certified Mortgage Planners - Orlando, FL
Chris Brown 407.367.2974

Rob, send me an email and we can discuss further.  I know a way that may not eat in to your time to much but give you even greated exposure.  Your content is too good to be restricted to just AR.

 

Chris the implementer

Sep 25, 2008 03:08 AM #4
Anonymous
Dave

I often ponder on how these new regulations can affect a person looking to buy a primary residence (lets say, via foreclosure). I am not too clear on it yet.

Thanks

Dave

http://valuestockinvestors.blogspot.com/

Sep 28, 2008 04:03 AM #5
Anonymous
Martin

avoid financial hassles arising from foreclosures\ with the help of florida
foreclosure.For details pls log on to http://www.floridaforeclosurehelp.us

Dec 20, 2010 05:53 PM #6
Anonymous
Gina
Friend's home went into foreclosure, auction is today. Three days ago, she went to move the rest of her belonging out only to find someone had moved in. Private and personal papers, etc. thrown in the yard. Police were called. The "intruder" came the next day. He was given a key by an investor who is getting some sort of government cash to assist his living expenses. The key was from a realtor who tried and failed to sell the property last year. Friend still owns the home and insurance, etc. Still in her name. Mortgage co and investor had nothing to say. Seems to me that this is theft and fraud and high risk to her all the way around. Advised her to report it to the states attorney general's office. What else can she do?
Jul 08, 2011 03:53 AM #7
Rainmaker
913,876
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

If it was a real estate licenesee that gave the person the key, she might be able to file a complaint with the Division of Real Estate.  Otherwise, calling the police is the proper procedure. 

Often times the bank will send inspectors out to the home and if it appears abandoned, they will change the locks and secure the property.  Typically they do not do trash outs though until the foreclosure gets completed.

Jul 08, 2011 04:45 AM #8
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