POLITICANS RUSH TO CASTRATE FINANCIAL REFORM

COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary SEE LIVINGLIES LITIGATION SUPPORT AT LUMINAQ.COM

The fact that Wall Street is so intent on doing this can only indicate one thing: they intend to do it again. Wake up America!

SEE VIDEO ELIZABETH WARREN ON GOALS FOR FINANCIAL CONSUMER PROTECTION

Note: One of the things that Warren brings out in the video is that the disclosure forms come much too late in the process. The obvious effect is that besides being confusing  on their face, there is very little time for consumer to study or get help understanding the disclosure statements. Early rendition and delivery of the disclosure statements would add to the barrier of committing consumer fraud. By requiring early delivery, the “lender” would not be able to argue later that the borrower was informed of the terms and signed anyway, even when the consumer never had any real opportunity to look at those forms. Now we have to argue that the delivery of the forms was under circumstances where the consumer was meant not to understand the transaction. Warren’s goal addresses that head-on.

EDITORIAL COMMENT: The only wrong with this editorial from the NY Times is that they seem to limit it to Republicans. I’ll agree that Republicans are leading the charge, but many Democrats are in the pack racing for ways to please Wall Street which is throwing money around like confetti. By making it a Republican vs. Democrat issue, the editorial diverts us from the point — that the Dodd-Frank bill is under attack and they intend to chip away at it in pieces by denying appropriations and otherwise tangling up the works so that it doesn’t work.

Who Will Rescue Financial Reform?

In what passes for self-restraint these days, House Republicans have been insisting that they do not intend to repeal last year’s Dodd-Frank financial reform law.

Not in one fell swoop, anyway.

A direct assault on Dodd-Frank would be so blatantly biased toward banks that it would be sure to provoke a public backlash. So the Republican plan is to delay and disrupt reform. The effort is partly ideological — an insistence that regulation is unnecessary, no matter the evidence to the contrary. It is also a campaign fund-raising ploy, because Wall Street will reward the opponents of reform. Of course, Democrats are themselves not indifferent to Wall Street campaign cash, which raises the question of how effectively they will counter the Republicans’ aims. Here are areas to watch.

DERIVATIVES Budget cuts could cripple the Securities and Exchange Commission and the Commodity Futures Trading Commission — which share the vital task of regulating the multitrillion-dollar derivatives market. The budget impasse in Washington has already frozen the agencies’ budgets, even as their rule-writing duties have exploded. Worse, prevailing Republican rhetoric, adopted in part by Democrats, portends more budget cuts, which would leave the agencies unable to enforce current rules, let alone new ones. Settling for less than President Obama’s requested amounts for the agencies would be acquiescing in the derailment of Dodd-Frank.

CONSUMER PROTECTION The Consumer Financial Protection Bureau, arguably the most innovative of the reforms, has been under constant attack by banks — and Republicans. Most recently, a House hearing on the bureau that was billed as an oversight session was instead a hazing of Elizabeth Warren, the Harvard law professor and consumer advocate chosen by Mr. Obama to set up the agency. Republican objections boiled down to charges that the agency — and Ms. Warren — have too much power. Ms. Warren’s rebuttals were clear and persuasive. Mr. Obama could define the debate further — and demonstrate his professed support for the bureau — by going on the offensive and nominating Ms. Warren as its official director. Senate Republicans have said that they would object, but it is their own credibility that would be at risk in opposing so qualified a candidate.

REPEAL BY ANOTHER NAME House Republicans have unveiled several bills to undo Dodd-Frank piece by piece. One would rewrite the law so that the C.F.P.B would be run by a five-member bipartisan board, rather than one director, a recipe for delay and division. Another would exempt an array of derivatives users from the new rules, perpetuating the deregulated market.

Yet another bill would repeal a requirement for private equity firms to register with the S.E.C, in effect ignoring the systemic risks in leveraged pools of private capital. And one would repeal a requirement that publicly traded companies disclose the ratio of a chief executive’s pay to that of a typical employee, a move that would deprive analysts of data to detect bubbles that correlate to skewed pay. The list goes on.

Dodd-Frank is no cure-all, but properly implemented and enforced, it would close dangerous regulatory gaps. That won’t happen if Republicans get their way — and they will, unless the fight is engaged in no uncertain terms. Democrats in Congress need to unite behind the law and Obama officials should denounce the antireform effort for what it is: an attempt to weaken Dodd-Frank on behalf of those who brought us the financial crisis.

ATTACK ON WORKERS WILL KEEP HOUSING IN A DOWNWARD SPIRAL

COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary SEE LIVINGLIES LITIGATION SUPPORT AT LUMINAQ.COM

EDITORIAL COMMENT: Maybe it works politically to get elected, but this attack on workers looks like scape-goating to me, and a pretty effective attempt to distract from reality with the myth that workers, homeowners and pensioners caused the historic financial mess that was in fact created, promoted and allowed solely by Wall Street with the blessing of our government.

These events where long-standing historical pictures of workers doing their work are torn down, destroyed and put away, is like the editorial says, shades of measures you see in third world countries with ruthless dictatorships changing “reality” at will. For it isn’t a matter of the extent to which collective bargaining rights should exist or be regulated, it is something entirely different.

This attack to score political points is shooting all of us in the foot. All of us are walking down a dangerous path of economic chaos and destruction — whether we are rich or poor, and whether we wish to acknowledge it or not. The facts are there for anyone to do their own analysis. World events have accumulated to the point where it is absolutely certain that nobody can be certain about how anything is going to turn out. We can only hope or fantasize.

Political expediency always trumps right action. So instead of coming together and finding ways where we have each other’s backs, we are continuing the decades long trend of pulling apart and finger pointing. Here is a fact that is incontrovertible: if workers in the U.S. were fully employed with reasonable compensation and coverage of all the physical needs for themselves and their families, the entire economy would be booming. Here is another one: putting working class people lower on the social scale into near slaves will cause them to do other things — people don’t like to be treated that way, especially Americans.

These attacks are simply impractical regardless of how much you believe workers deserve to be treated this way. without them employed, earning money and leveling out income inequality, there will be nobody to buy anything, make anything or do anything in America except trade paper on Wall Street. “Anything” includes especially homes whose bottom is still not in sight simply because our politicians lack the “vision” to see what is right in front of them.

At this point I don’t care who goes to jail or even who deserves to be blamed. I want out of this mess. The enormous collateral benefits conferred on Wall Street did nothing to increase liquidity or allow an economic recovery that ordinary people can see on their dinner table, if they have one, in their home, if they have one. The table is tilted on an extreme angle away from the ordinary citizen and toward about 400 people who basically have or control most of the wealth in this country. When you are talking 400 versus 300,000,000 citizens, things have gone too far.

Continuation of this scape-goating, and avoiding the realities of our ailing economy will only prolong and deepen the pain. We’ve been attacked by a common enemy — Wall Street. I thought Americans pulled together and responded to such attacks in unity and always won against the aggressor. This time, maybe not.

He Dreamed He Saw Kim Jong-il

As Republican governors vie to become the most anti-union executive in the land, Gov. Paul LePage of Maine has stooped to behavior worthy of the pharaohs’ chiseling historic truth from Egyptian monuments. Mr. LePage has ordered that a 36-foot-wide mural depicting workers’ history in Maine be removed from the lobby of the state’s Labor Department.

The reason? His office cited some complaints from offended business leaders and an anonymous fax declaring that the mural smacked of official brainwashing by North Korea’s dictator.

This is what’s passing for democratic governance in a state with a noble workers’ history. The mural honors such groups as the state’s shoemakers and the women riveters who kept the ironworks going in World War II. Key workplace moments depicted include a paper mill strike against harsh working conditions and a tribute to pioneer lumberjacks.

All too “one-sided,” decreed the governor, who also ordered that the agency’s seven meeting rooms no longer be named after figures from workers’ history. The nation’s first woman cabinet member — Labor Secretary Frances Perkins — is buried in her beloved Maine, but her room name won’t survive. Nor will state residents be reminded of William Looney, a 19th-century Republican legislator who fought for state child labor reforms.

Mr. LePage’s acting labor commissioner suggests replacing the mural with neutral paint and naming the conference rooms after Maine mountains.

To be fair, Mr. LePage does retain a sense of workplace opportunity. After his election last November, he named Lauren, his 22-year-old, fresh-from-college daughter, to what was termed an entry-level job as assistant to the governor’s chief of staff.

At $41,000 a year, the post offers $10,000 more than the pay for workers who pass the teacher and police tests. That’s on top of Ms. LePage’s free room and board at the governor’s mansion.

Foreclosure Defense: Confusion in Florida — Butterfly Ballot Approach to Legislation

FLORIDA GETS PECULIAR AGAIN:

It was about 40 years ago that a decision out of a Florida court or a statute passed by the Florida legislature was taken to mean nothing in terms of precedent or national law. After that they passed many laws and created many court decisions that served as models for the rest of the country. Here is a GIANT STEP BACKWARD:

The Republican dominated legislature now wishes to make it very difficult if not impossible for the homeowner/borrower to defend their foreclosure, to even hire a lawyer or other professional consultant, or otherwise defend their rights under the due process requirements of the U.S. Constitution and the Florida Constitution, by the way, with which I am very familiar. Using the naming convention perfected by politicians performing slight of hand tricks on the public, they attempt to make it it as though this will rescue someone in foreclosure. It doesn’t. It makes it harder for them and easier on the “lenders” who are not even lenders.

From Dawn Rapaport, Esq..: Ft. Lauderdale, June 30, 2008

Foreclosure Rescue Fraud Prevention Act of 2008 is the new law going in to effect.  I need to write about it in the next couple days but the most glaring issue is that is does not exclude lawyers, it precludes ANYONE from taking any money as a retainer or in advance in exchange for helping in foreclosure rescue.  We have to get to the legislature and to Governor Christ to stop this law from going in to effect as it stands now.

CHAPTER 2008-79

Council Substitute for House Bill No. 643

An act relating to foreclosure fraud; creating s. 501.1377, F.S.; providing

legislative findings and intent with respect to the need to protect

homeowners who enter into agreements designed to save their

homes from foreclosure; providing definitions; prohibiting a foreclosure-

rescue consultant from engaging in certain acts or failing to

perform contracted services; requiring that all agreements for foreclosure-

related rescue services and foreclosure-rescue transactions

be in writing; specifying information that must be in the written

agreement; requiring that certain statements in the written agreement

be in uppercase letters and of a specified size; providing that

the homeowner has a right to cancel the agreement for a specified

period and the right may not be waived; providing that the homeowner

has a specified period during which to cure a default under

certain circumstances; requiring equity purchasers to assume or

discharge certain liens; requiring that an equity purchaser verify

the homeowner’s ability to make payments under a repurchase

agreement; providing price limitations for repurchase transactions;

providing for a rebuttable presumption of certain transactions being

unconscionable under certain circumstances; providing for limited

application of the presumption; providing an exclusion; providing

that a foreclosure-rescue transaction involving a lease option or

other repurchase agreement creates a rebuttable presumption that

the transaction is a loan transaction and the conveyance from the

homeowner to the equity purchaser is a mortgage; providing limited

application of the presumption; providing an exclusion; providing

that a person who violates certain provisions commits an unfair and

deceptive trade practice as defined in part II of ch. 501, F.S.; providing

penalties; repealing s. 501.2078, F.S., relating to violations involving

individual homeowners during the course of residential foreclosure

proceedings; providing an effective date.

Be It Enacted by the Legislature of the State of Florida:

Section 1. Section 501.1377, Florida Statutes, is created to read:

501.1377 Violations involving homeowners during the course of residential

foreclosure proceedings.—

(1) LEGISLATIVE FINDINGS AND INTENT.—The Legislature finds

that homeowners who are in default on their mortgages, in foreclosure, or

at risk of losing their homes due to nonpayment of taxes may be vulnerable

to fraud, deception, and unfair dealings with foreclosure-rescue consultants

or equity purchasers. The intent of this section is to provide a homeowner

with information necessary to make an informed decision regarding the sale

or transfer of his or her home to an equity purchaser. It is the further intent

of this section to require that foreclosure-related rescue services agreements

be expressed in writing in order to safeguard homeowners against deceit and

financial hardship; to ensure, foster, and encourage fair dealing in the sale

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and purchase of homes in foreclosure or default; to prohibit representations

that tend to mislead; to prohibit or restrict unfair contract terms; to provide

a cooling-off period for homeowners who enter into contracts for services

related to saving their homes from foreclosure or preserving their rights to

possession of their homes; to afford homeowners a reasonable and meaningful

opportunity to rescind sales to equity purchasers; and to preserve and

protect home equity for the homeowners of this state.

(2) DEFINITIONS.—As used in this section, the term:

(a) “Equity purchaser” means any person who acquires a legal, equitable,

or beneficial ownership interest in any residential real property as a result

of a foreclosure-rescue transaction. The term does not apply to a person who

acquires the legal, equitable, or beneficial interest in such property:

1. By a certificate of title from a foreclosure sale conducted under chapter

45;

2. At a sale of property authorized by statute;

3. By order or judgment of any court;

4. From a spouse, parent, grandparent, child, grandchild, or sibling of the

person or the person’s spouse; or

5. As a deed in lieu of foreclosure, a workout agreement, a bankruptcy

plan, or any other agreement between a foreclosing lender and a homeowner.

(b) “Foreclosure-rescue consultant” means a person who directly or indirectly

makes a solicitation, representation, or offer to a homeowner to provide

or perform, in return for payment of money or other valuable consideration,

foreclosure-related rescue services. The term does not apply to:

1. A person excluded under s. 501.212.

2. A person acting under the express authority or written approval of the

United States Department of Housing and Urban Development or other

department or agency of the United States or this state to provide foreclosure-

related rescue services.

3. A charitable, not-for-profit agency or organization, as determined by

the United States Internal Revenue Service under s. 501(c)(3) of the Internal

Revenue Code, which offers counseling or advice to an owner of residential

real property in foreclosure or loan default if the agency or organization does

not contract for foreclosure-related rescue services with a for-profit lender

or person facilitating or engaging in foreclosure-rescue transactions.

4. A person who holds or is owed an obligation secured by a lien on any

residential real property in foreclosure if the person performs foreclosurerelated

rescue services in connection with this obligation or lien and the

obligation or lien was not the result of or part of a proposed foreclosure

reconveyance or foreclosure-rescue transaction.

Ch. 2008-79 LAWS OF FLORIDA Ch. 2008-79

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5. A financial institution as defined in s. 655.005 and any parent or

subsidiary of the financial institution or of the parent or subsidiary.

6. A licensed mortgage broker, mortgage lender, or correspondent mortgage

lender that provides mortgage counseling or advice regarding residential

real property in foreclosure, which counseling or advice is within the

scope of services set forth in chapter 494 and is provided without payment

of money or other consideration other than a mortgage brokerage fee as

defined in s. 494.001.

(c) “Foreclosure-related rescue services” means any good or service related

to, or promising assistance in connection with:

1. Stopping, avoiding, or delaying foreclosure proceedings concerning

residential real property; or

2. Curing or otherwise addressing a default or failure to timely pay with

respect to a residential mortgage loan obligation.

(d) “Foreclosure-rescue transaction” means a transaction:

1. By which residential real property in foreclosure is conveyed to an

equity purchaser and the homeowner maintains a legal or equitable interest

in the residential real property conveyed, including, without limitation, a

lease option interest, an option to acquire the property, an interest as beneficiary

or trustee to a land trust, or other interest in the property conveyed;

and

2. That is designed or intended by the parties to stop, avoid, or delay

foreclosure proceedings against a homeowner’s residential real property.

(e) “Homeowner” means any record title owner of residential real property

that is the subject of foreclosure proceedings.

(f) “Residential real property” means real property consisting of onefamily

to four-family dwelling units, one of which is occupied by the owner

as his or her principal place of residence.

(g) “Residential real property in foreclosure” means residential real property

against which there is an outstanding notice of the pendency of foreclosure

proceedings recorded pursuant to s. 48.23.

(3) PROHIBITED ACTS.—In the course of offering or providing foreclosure-

related rescue services, a foreclosure-rescue consultant may not:

(a) Engage in or initiate foreclosure-related rescue services without first

executing a written agreement with the homeowner for foreclosure-related

rescue services; or

(b) Solicit, charge, receive, or attempt to collect or secure payment, directly

or indirectly, for foreclosure-related rescue services before completing

or performing all services contained in the agreement for foreclosure-related

rescue services.

Ch. 2008-79 LAWS OF FLORIDA Ch. 2008-79

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(4) FORECLOSURE-RELATED RESCUE SERVICES; WRITTEN

AGREEMENT.—

(a) The written agreement for foreclosure-related rescue services must be

printed in at least 12-point uppercase type and signed by both parties. The

agreement must include the name and address of the person providing

foreclosure-related rescue services, the exact nature and specific detail of

each service to be provided, the total amount and terms of charges to be paid

by the homeowner for the services, and the date of the agreement. The date

of the agreement may not be earlier than the date the homeowner signed the

agreement. The foreclosure-rescue consultant must give the homeowner a

copy of the agreement to review not less than 1 business day before the

homeowner is to sign the agreement.

(b) The homeowner has the right to cancel the written agreement without

any penalty or obligation if the homeowner cancels the agreement within

3 business days after signing the written agreement. The right to cancel may

not be waived by the homeowner or limited in any manner by the foreclosure-

rescue consultant. If the homeowner cancels the agreement, any payments

that have been given to the foreclosure-rescue consultant must be

returned to the homeowner within 10 business days after receipt of the

notice of cancellation.

(c) An agreement for foreclosure-related rescue services must contain,

immediately above the signature line, a statement in at least 12-point uppercase

type that substantially complies with the following:

HOMEOWNER’S RIGHT OF CANCELLATION

YOU MAY CANCEL THIS AGREEMENT FOR FORECLOSURERELATED

RESCUE SERVICES WITHOUT ANY PENALTY OR OBLIGATION

WITHIN 3 BUSINESS DAYS FOLLOWING THE DATE THIS

AGREEMENT IS SIGNED BY YOU.

THE FORECLOSURE-RESCUE CONSULTANT IS PROHIBITED BY

LAW FROM ACCEPTING ANY MONEY, PROPERTY, OR OTHER FORM

OF PAYMENT FROM YOU UNTIL ALL PROMISED SERVICES ARE

COMPLETE. IF FOR ANY REASON YOU HAVE PAID THE CONSULTANT

BEFORE CANCELLATION, YOUR PAYMENT MUST BE RETURNED

TO YOU NO LATER THAN 10 BUSINESS DAYS AFTER THE

CONSULTANT RECEIVES YOUR CANCELLATION NOTICE.

TO CANCEL THIS AGREEMENT, A SIGNED AND DATED COPY OF A

STATEMENT THAT YOU ARE CANCELLING THE AGREEMENT

SHOULD BE MAILED (POSTMARKED) OR DELIVERED TO ……..

(NAME) AT …….. (ADDRESS) NO LATER THAN MIDNIGHT OF ……..

(DATE).

IMPORTANT: IT IS RECOMMENDED THAT YOU CONTACT YOUR

LENDER OR MORTGAGE SERVICER BEFORE SIGNING THIS AGREEMENT.

YOUR LENDER OR MORTGAGE SERVICER MAY BE WILLING

TO NEGOTIATE A PAYMENT PLAN OR A RESTRUCTURING WITH

YOU FREE OF CHARGE.

Ch. 2008-79 LAWS OF FLORIDA Ch. 2008-79

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(d) The inclusion of the statement does not prohibit the foreclosure rescue

consultant from giving the homeowner more time in which to cancel

the agreement than is set forth in the statement, provided all other requirements

of this subsection are met.

(e) The foreclosure-rescue consultant must give the homeowner a copy of

the signed agreement within 3 hours after the homeowner signs the agreement.

(5) FORECLOSURE-RESCUE TRANSACTIONS; WRITTEN AGREEMENT.—

(a)1. A foreclosure-rescue transaction must include a written agreement

prepared in at least 12-point uppercase type that is completed, signed, and

dated by the homeowner and the equity purchaser before executing any

instrument from the homeowner to the equity purchaser quitclaiming, assigning,

transferring, conveying, or encumbering an interest in the residential

real property in foreclosure. The equity purchaser must give the homeowner

a copy of the completed agreement within 3 hours after the homeowner

signs the agreement. The agreement must contain the entire understanding

of the parties and must include:

a. The name, business address, and telephone number of the equity purchaser.

b. The street address and full legal description of the property.

c. Clear and conspicuous disclosure of any financial or legal obligations

of the homeowner that will be assumed by the equity purchaser.

d. The total consideration to be paid by the equity purchaser in connection

with or incident to the acquisition of the property by the equity purchaser.

e. The terms of payment or other consideration, including, but not limited

to, any services that the equity purchaser represents will be performed

for the homeowner before or after the sale.

f. The date and time when possession of the property is to be transferred

to the equity purchaser.

2. A foreclosure-rescue transaction agreement must contain, above the

signature line, a statement in at least 12-point uppercase type that substantially

complies with the following:

I UNDERSTAND THAT UNDER THIS AGREEMENT I AM SELLING

MY HOME TO THE OTHER UNDERSIGNED PARTY.

3. A foreclosure-rescue transaction agreement must state the specifications

of any option or right to repurchase the residential real property in

foreclosure, including the specific amounts of any escrow payments or deposit,

down payment, purchase price, closing costs, commissions, or other

fees or costs.

Ch. 2008-79 LAWS OF FLORIDA Ch. 2008-79

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4. A foreclosure-rescue transaction agreement must comply with all applicable

provisions of 15 U.S.C. ss. 1600 et seq. and related regulations.

(b) The homeowner may cancel the foreclosure-rescue transaction agreement

without penalty if the homeowner notifies the equity purchaser of such

cancellation no later than 5 p.m. on the 3rd business day after signing the

written agreement. Any moneys paid by the equity purchaser to the homeowner

or by the homeowner to the equity purchaser must be returned at

cancellation. The right to cancel does not limit or otherwise affect the homeowner’s

right to cancel the transaction under any other law. The right to

cancel may not be waived by the homeowner or limited in any way by the

equity purchaser. The equity purchaser must give the homeowner, at the

time the written agreement is signed, a notice of the homeowner’s right to

cancel the foreclosure-rescue transaction as set forth in this subsection. The

notice, which must be set forth on a separate cover sheet to the written

agreement that contains no other written or pictorial material, must be in

at least 12-point uppercase type, double-spaced, and read as follows:

NOTICE TO THE HOMEOWNER/SELLER

PLEASE READ THIS FORM COMPLETELY AND CAREFULLY. IT

CONTAINS VALUABLE INFORMATION REGARDING CANCELLATION

RIGHTS.

BY THIS CONTRACT, YOU ARE AGREEING TO SELL YOUR HOME.

YOU MAY CANCEL THIS TRANSACTION AT ANY TIME BEFORE 5:00

P.M. OF THE THIRD BUSINESS DAY FOLLOWING RECEIPT OF THIS

NOTICE.

THIS CANCELLATION RIGHT MAY NOT BE WAIVED IN ANY MANNER

BY YOU OR BY THE PURCHASER.

ANY MONEY PAID DIRECTLY TO YOU BY THE PURCHASER MUST

BE RETURNED TO THE PURCHASER AT CANCELLATION. ANY

MONEY PAID BY YOU TO THE PURCHASER MUST BE RETURNED TO

YOU AT CANCELLATION.

TO CANCEL, SIGN THIS FORM AND RETURN IT TO THE PURCHASER

BY 5:00 P.M. ON …….. (DATE) AT …….. (ADDRESS). IT IS BEST

TO MAIL IT BY CERTIFIED MAIL OR OVERNIGHT DELIVERY, RETURN

RECEIPT REQUESTED, AND TO KEEP A PHOTOCOPY OF THE

SIGNED FORM AND YOUR POST OFFICE RECEIPT.

I (we) hereby cancel this transaction.

Seller’s Signature

Printed Name of Seller

Seller’s Signature

Printed Name of Seller

Date

(c) In any foreclosure-rescue transaction in which the homeowner is provided

the right to repurchase the residential real property, the homeowner

has a 30-day right to cure any default of the terms of the contract with the

equity purchaser, and this right to cure may be exercised on up to three

separate occasions. The homeowner’s right to cure must be included in any

written agreement required by this subsection.

Ch. 2008-79 LAWS OF FLORIDA Ch. 2008-79

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(d) In any foreclosure-rescue transaction, before or at the time of conveyance,

the equity purchaser must fully assume or discharge any lien in foreclosure

as well as any prior liens that will not be extinguished by the

foreclosure.

(e) If the homeowner has the right to repurchase the residential real

property, the equity purchaser must verify and be able to demonstrate that

the homeowner has or will have a reasonable ability to make the required

payments to exercise the option to repurchase under the written agreement.

For purposes of this subsection, there is a rebuttable presumption that the

homeowner has a reasonable ability to make the payments required to

repurchase the property if the homeowner’s monthly payments for primary

housing expenses and regular monthly principal and interest payments on

other personal debt do not exceed 60 percent of the homeowner’s monthly

gross income.

(f) If the homeowner has the right to repurchase the residential real

property, the price the homeowner pays may not be unconscionable, unfair,

or commercially unreasonable. A rebuttable presumption, solely between

the equity purchaser and the homeowner, arises that the foreclosure-rescue

transaction was unconscionable if the homeowner’s repurchase price is

greater than 17 percent per annum more than the total amount paid by the

equity purchaser to acquire, improve, maintain, and hold the property. Unless

the repurchase agreement or a memorandum of the repurchase agreement

is recorded in accordance with s. 695.01, the presumption arising

under this subsection shall not apply against creditors or subsequent purchasers

for a valuable consideration and without notice.

(6) REBUTTABLE PRESUMPTION.—Any foreclosure-rescue transaction

involving a lease option or other repurchase agreement creates a rebuttable

presumption, solely between the equity purchaser and the homeowner,

that the transaction is a loan transaction and the conveyance from the

homeowner to the equity purchaser is a mortgage under s. 697.01. Unless

the lease option or other repurchase agreement, or a memorandum of the

lease option or other repurchase agreement, is recorded in accordance with

s. 695.01, the presumption created under this subsection shall not apply

against creditors or subsequent purchasers for a valuable consideration and

without notice.

(7) VIOLATIONS.—A person who violates any provision of this section

commits an unfair and deceptive trade practice as defined in part II of this

chapter. Violators are subject to the penalties and remedies provided in part

II of this chapter, including a monetary penalty not to exceed $15,000 per

violation.

Section 2. Section 501.2078, Florida Statutes, is repealed.

Section 3. This act shall take effect October 1, 2008.

Approved by the Governor May 28, 2008.

Filed in Office Secretary of State May 28, 2008.

Ch. 2008-79 LAWS OF FLORIDA Ch. 2008-79

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Dawn M. Rapoport, Esq.
Dawn M. Rapoport, P.A.
1314 East Las Olas Blvd. # 121
Fort Lauderdale, FL 33301
Ph: 754-235-7635
Fax: 954-337-3759

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