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Illinois Mortgage Rescue Fraud Act

 

Since we offer our Post-Bankruptcy Report in Chicago, we would like to address the issue of a new law that goes into affect January, 2007. One of our close contacts in the Chicago area has spent a lot of time talking to the Attorney General about this law. He has confirmed that our “take” on the law is in agreement with the “spirit” of the law. Our understanding is that the law:

- Applies to investors getting PAID by a Seller to somehow solve
their foreclosure problems;
- Applies to investors who buy a home and allow the Seller to
stay, rent, lease-option or otherwise convey some future
interest to the original Seller; and
- Specifically excludes investors that purchase
via short sale.

We strongly recommend that you consult with your attorney to see if you need to adjust your marketing materials or business practices. We further suggest that you:

- Pay closer attention to how things are worded in your marketing materials.
- Keep your message and services CLEAR … both in your written documents and what you say to Sellers.
- Examine your business practices to fully protect yourself

Please realize that people are not going to stop getting in trouble and investors are not going to stop buying houses just because this new law is in place. In fact, we have had a similar law on the books in Georgia for almost two decades and Atlanta is a huge investor market … we just follow the above guidelines and suggestions.

The Illinois Mortgage Rescue Fraud Act does not effect "the average" Post-Bankruptcy Report customer. However, it does effect you if you're doing leasebacks or charging the Seller as a foreclosure consultant. In short, consult with your attorney on all such legal matters and make whatever adjustments are necessary so there's no reason for the bill to concern your prospects or you, as an ethical investor.

To read the law in its entirety, go to
http://www.ilga.gov/legislation/fulltext.asp?DocName=&SessionId=50&GA=94&DocTypeId=SB&DocNum=2349&GAID=8&LegID=23053&SpecSess=&Session

 

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