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.
(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
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.
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