LEGISLATIVE ALERT
U.S. Senate Plans to Consider "Foreclosure Rescue Scam" Legislation
· Legislation Expected to be Introduced Soon.
· Measure Likely to be Modeled After a Minnesota Law,
· But May Contain Additional Restrictions Harmful to Investors Nationwide
February, 2008 (U. S. Senate)
Wisconsin Senator Herb Kohl has announced plans to introduce legislation aimed at curbing the rise of 'foreclosure rescue scams' - using a model which may include restrictions that could be harmful to all real estate investors. The measure is likely to contain some or all of the following provisions:
· Ban on leasebacks-to-owners
· Ban on upfront foreclosure consultant fees
· Ban on all "subject to" transactions
· Limitations on an investor's ability to purchase or take an equity interest in a home in default
· Ban on all advertising related to "Saving Homes from Foreclosure"
· Restrictions on real estate seminars, which could even apply to Real Estate Investor Association meetings
The measure is likely to be modeled after a 2004 Minnesota law that governs real estate investors. The National Association of Realtors (NAR) has proposed the Minnesota law as an acceptable model for the entire United States. However, it should be noted, the members of NAR are exempt from this law. (Also noteworthy - in the Minneapolis / HennepinCounty area alone, foreclosures have increased more than five-fold since the 2004 passage of the Minnesota statute.)
On behalf of real estate investors at the national level, the National Association of Responsible Home Rebuilders & Investors (NARHRI) is already tracking this legislation. NARHRI Executive Director John Grant says that NARHRI will offer an alternative version of this legislation from the Commonwealth of Virginia, which has received the full support of local realtors, lenders, consumer groups, and which recently passed the House unanimously.
NARHRI expects to see intense political pressure for passage of the legislation before members of Congress leave in the fall. NARHRI indicates it will be providing updates on this effort as circumstances warrant.
We are publishing this alert as part of our continuing effort to inform investors and highlight the importance of your support for the work of TexREIA and NARHRI at both the state and federal levels. The U.S. House of Representatives will likely also act on this issue shortly, and lobbying and public relations efforts will involve hundreds of meetings with members of Congress and staff, preparation of letters, white papers, and testimony, advertising in Capitol Hill media outlets, and extensive outreach to the Federal Trade Commission.
Please show your support, and invest in your own future as an independent investor, by joining TexREIA today as a member, or making a donation, at supporttexreia.eventbright.com
Texas Real Estate Investors Association
texreia@sbcglobal.net
12801 N. Stemmons Freeway, Suite 701
Dallas, Texas 75234
214-769-1473
| READ... > Congress Starts Work on Sub Prime Problem. > Summary of New Texas Legislation Effecting Real Estate Investing.
> McPherson's "10 Worst" Texas R/E Laws. > NARHRI Helps Texas Investors. > Fall '07 Fund Raiser - A Big Winner
Why Should You Care ? Why should you care about what's happening with legislation effecting investing in Texas? Because your future as an independent real estate investor in Texas is being threatened with extinction. How so?
Think of it this way. Picture a trial - in which the Judge and Jury are the State Legislature. In order to make their judgments, they must rely on what they are told - the information which is provided by the Prosecutor and the Defender. The Prosecutor in this trial is an aggressive coalition of well funded, well organized pro-consumer, pro-minority special interest groups who view all investors as crooks and parasites. The Accused in this trial are the real estate investors. The current problem in this case has been that there is no Defender; no one to challenge accusations and clarify facts. Therefore, the Accused is at the mercy of whatever the Prosecutor tells the Judge and Jury. This is no fantasy; this is the current reality in Texas. .
Lieutenant Governor David Dewhurst hit the nail on the head. He was talking about how much the law making by the Legislature is influenced by the information which they are given, or can obtain. He was concerned that the legislators do not have any source of information, or point of contact, to verify the assertions and accusations which are made about real estate investors by the well-organized special interest groups such as ACORN and LULAC. He made his powerful point with a simple example "… even the tow truck drivers have an association and lobbyist which the Legislature can confer with on their issues. Real estate investors in Texas have nowhere for the Legislature to turn to hear the other side - their side -of the story" .
We have already begun to see the effectiveness of this attack - in the new restrictive investing laws recently passed. If we allow this assualt to continue unchallenged, it has the potential to not only do great harm to the markets we serve, but also to create barriers and restrictions which will make it too difficult and unprofitable to be an independent investor.
What can you do to help avoid the extinction of independent investing? We hope you will support the work of TexREIA. Help us build and maintain an advocacy presence in Austin - to be a point of contact for legislators, and to be a voice to fairly and accurately represent the positive contributions of independent investors. You can join TexREIA as a Member, or make a donation, online at http://supporttexreia.eventbrite.com/
texreia@sbcglobal.net
972-671-7346
|