BUY A HOUSE, GO DIRECTLY TO JAIL!

"THE HOME EQUITY THEFT PROTECTION LAW"

Chapter 308

See NYREIA's Power Point Presentation File Attachment below.Read the bill that Governor Pataki signed into Law.When this window opens select Chapter No from the first drop down window, then type in 308 then select 2006 for the year and finally check the text box to read it in its entirety.

Contents of the Law

• Applies to one time purchasers
• 1-4 family dwellings
• Preforeclosure is defined as any homeowner who is at least 2 payments behind
• 5 day cancellation with state mandated language
• 2 years to rescind purchase with 20 days to re-convey title free and clear
• Jail time
• Up to $25,000 fine
• Homeowner gets 82% of profits from home sale’s fair market value
• Investor is limited to making 18%
• 120 days to pay 82% proceeds to homeowner
• Investor can not limit liability in contract
• No arbitration of disputes allowed
• Arbitration voids purchase contract
• Your constitutional right to legal representation of your choice has now been
  removed as the buyer
• Fraud or deception is class E felony with penalty of jail time and up to 3X
  damages
• Option to repurchase will automatically be classified as a predatory loan
  transaction
• Reconveyance requires documentation to prove seller’s ability to repay
• Reconveyance can not be “unfair or commercially unreasonable”
• Detailed accounting procedures according to banking law standards

Repercussions

• Title companies in all likelihood won’t insure pre-foreclosed properties
• Buyers won’t be able to obtain financing
• Your buyers may lose house for up to 2 years
• More bankruptcies and foreclosures, ruined credit
• Bureaucracy will stop realtors, mortgage brokers, buyers from helping
• More homes sold on county courthouse steps
• Banks take back homes, homeowners lose everything
• More lawsuits challenging this law

What does this mean? No one can afford to purchase and resell a home that arbitrarily can be rescinded up to 2 years after the purchase with penalties as severe as one year in jail and fines up to $25,000. Can the state afford the lawsuits that will occur when they subjectively decide to rescind a home purchase?Is there any other business where the legislature can decide how much money a person or company can make? If a homeowner agrees to sell his or her home, what right does the legislature have to stop them if all terms are written in plain language and agreed upon? Whatever happened to OFFER AND ACCEPTANCE? Whatever happened to MEETING OF THE MINDS? These are basic Contract Law concepts that are taught to first year Law School students, yet the state legislature is undermining these basic tenets of contract law.When a homeowner is facing the possibility of losing their home, they have every right to do everything they can - make up back payments, negotiate with the lender, try to refinance or sell their home. This law will eliminate these options and lead to most homes either making it to the courthouse steps or having the homeowner deed in lieu their home to the bank, increase bankruptcies, create empty boarded up properties that are not maintained and owned by out of state lenders.

Action you must take

• CALL and Email/write your Senators and Assembly men and women
  immediately demand that an ammendment to this law be introduced
  in the September 2006 session

• Ask all friends to do the same

• Email NYREIA for additional information on the Home Equity Theft
  Protection Law Chap 308