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Hb643 Articles

 

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While investors are calling Florida's new foreclosure legislation "Anti-investor" it was actually meant to be an anti-fraud statute. Previous legislation in Florida referred to as "Victimization" statutes also tried to slow or stop the pace of investor fraud against unsophisticated homeowners and homeowners in financial trouble. Both legislative efforts were well intended, but as with many other states passing similar legislation, the result will have negative effects on the housing market.

Governor Charlie Crist of Florida recently signed into law Statute 501.1377 (HB 643/SB 992) or what has since been called Anti-Fraud Legislation. The second part of this legislation targets certain types of foreclosure-related transactions including the purchase or acquisition of a property that is going into foreclosure or is already in foreclosure.

By way of background information regarding Florida's Foreclosure-rescue Fraud Legislation, investors are a much maligned group of small business entrepreneurs who take financial risks to purchase properties when almost no one else will, and face the financial loss of carrying properties that may or may not be sold for a profit. Despite the complaints of realtors when an investor makes a low-ball offer, very often there are no other offers for many properties.

 
 
 

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