18 States have Passed "NEW LAWS" for Loss Mitigation and Shortsales.

Real Estate Agent with Equity Builders Realty, Inc. 200308326


 "NEW LAWS" for "Loss Mitigation" and "Shortsales"

Are you in compliance with the "NEW LAWS" passed on Loss Mitigation & Shortsales in your state?

As of 9/21/08 - 18 states have passed "NEW LAWS" on Loss Mitigation and Shortsales. Other states are in the process of passing new laws [statutes] in order to prevent fraud, misrepresentation committed on the homeowner and lender(s). LMSI has conformed to these laws in all 50 states. NOTICE - *****GET THE STATUTE AND CHANGES!***** You must comply with these New Laws in each of these states; otherwise, you and everyone involved are in violation of these statutes and subject to civil and criminal prosecution. You should also be aware that it is not that difficult to become legal and comply with these New Laws.


What do these "NEW LAWS" deal with?

These "NEW LAWS" deal with a variety of ISSUES:

(1) THE CONTRACT - The contract must be reduced to a writing and a copy given to the homeowner at the time of signing the contract;

(2) FEES - The Loss Mitigation Fee or Shortsale Fee may not be collected up front;

(3) FULL PERFORMACE - "Full Performance" is required in order to get paid the Loss Mitigation Fee or Shortsale Fee for the service contracted for.

(4) DISCLOSURES - The homeowner must be given the right to rescind the contract [cancel] from 3 to 5 business days after the contract is signed.

(5) DUPLICATE NOTICES - Disclosures must be in duplicate and contain the language of the statute.

(6) VIOLATONS - Each state has enacted both civil and criminal penalties for violation of these statutes. There are various fines, damages, and potential imprisonment for either a misdemeanor or felony conviction. Each violation is treated as a separate count. In other words, if you did business with 10 people wrongfully, this would be 10 violations of the law.    

Recommendation - Please call LMSI for more "information" on these "NEW LAWS".

NOTICE. We are not attorneys and do not give out legal advice; If you need legal advice you should seek the advice of an attorney. We can work with you and your attorney to make sure that you are in compliance with these "New Laws" in your state or any other state where you are rendering Loss Mitigation or Shortsale services.       





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