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fax your Illinois State Representatives and tell them "Don't

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You may go to JAIL for buying houses in foreclosure!


The Mortgage Rescue Fraud Act has already passed the Senate and may soon pass the House.

The name of bill is SB2349 and it may put you in jail and out of business.


This bill defines how investors can do business with distressed property owners. It targets people in foreclosure, or at risk of losing their house due to nonpayment of property taxes, or more than 90 days in arrears on any loan secured by property. The bill restricts distressed property consultants and distressed property buyers.


If this law passes and you don't know the it, you could be going to jail. The following are some of the things you need to know if this bill becomes law:




Contract must contain NOTICE REQUIRED BY ILLINOIS LAW that gives seller 5 days to cancel and NOTICE OF CANCELLATION form must be completed and attached to Contract.




Contract must be recorded within 10 days of its execution, provided the contract has not been canceled. If the Contract is not recorded, the Contract and any conveyance made or given pursuant to the terms of the Contract are void.




Contract must contain NOTICE REQUIRED BY ILLINOIS LAW "Until your right to cancel this contract has ended [Name] or anyone working for [Name] CANNOT ask you to sign or have you sign any deed or any other document. You are urged to have this contract reviewed by an attorney of your choice within 5 business days or signing it."




Contract must contain NOTICE REQUIRED BY ILLINOIS LAW "As part of this transaction, you are giving up title to your home."




Buyer shall not pay seller less than 82% of the fair market appraised value, shall not enter into repurchase or lease terms with seller, shall not represent or act to "save the house" or "buy time".




Buyer must payoff or assume (place loan in their own name) liability of all liens on tile when purchasing the house.


If you violate the laws of this act, you may suffer criminal penalties and can be charged Class 2 Felony. This law makes you a criminal if you pay less than 82% of appraised fair market value or buy a house "Subject To" the existing mortgages in foreclosure or delinquent property taxes.


I have bought properties "Subject To" in foreclosure and delinquent on taxes. If this act becomes law and I do this, I could be charged with a Class 2 Felony and go to jail. I don't want to go to jail for buying houses in foreclosure, do you?


Are you going to allow the government to tell you what price to pay for a house in foreclosure?

Are you going to allow the government to regulate how you buy houses and make "Subject To" investing a crime?


You can read the bill in its entirety at http://www.ilga.gov/


House Sponsors (these people support this act)

(Rep. Marlow H. Colvin - Eddie Washington - Karen A. Yarbrough - Calvin L. Giles)


Call and fax your Illinois State Representatives and tell them "Don't Pass SB 2349 Mortgage Rescue Fraud Act"

There are 118 Illinois State Representatives in the House click here for a list.


PLEASE FORWARD this email to all investor you know.


Thank You,


Brian Profits

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Wow, that's pretty extreme! I can't imagine any level headed, clear thinking lawmaker agreeing to such legislation. A cap on profits is about as un-American as it gets.

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If you really want to get your blood boiling read This.
I've seen that hatchet job before. Someone obviously had an axe to grind. It only takes two paragraphs to see where he's going with his vendetta.


Since when are there "level headed, clear thinking" people running this country?



I read that Abe Lincoln was a pretty cool guy. Does that count?

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I have been trying to get to the http://www.ilga.gov site today but either the server is down or my Baghdad Internet connection won't go to IL today. The reason I want to get to the site is so that I can cut and paste some items out of the bill to show that this is being way over blown buy the Loss Mitigation folks who will be shut down by this.


Buying "Subject To" will be still legal. Buying "Subject To" and leasing back to the seller will not.


As to the 82% of FMV rule. If you read the section where it mentions that it defines what buyer this covers with a term “Distressed Property Purchaser”. Go back to the first part of the bill and this term is defined.


"Distressed property purchaser" means any person who

acquires any interest in a distressed property while allowing

the owner to possess, occupy, or retain any present or future

interest in the property, or any person who structures or plans

a distressed property conveyance.

"Distressed property conveyance" means a transaction in

which an owner of a distressed property transfers an interest

in the distressed property; the acquirer of the property allows

the owner of the distressed property to occupy the property;

and the acquirer of the property or a person acting in

participation with the acquirer of the property conveys or

promises to convey an interest back to the owner or gives the

owner an option to purchase the property at a later date.


So if your kicking them to the curb I don't see how this would apply.


For some good info check out http://www.narhri.org they even explain that the 82% rule is for lease-back deals.

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