Two new laws went into affect this month that affect the distressed real estate market.  The two bills, AB 94 and AB 957 impact how distressed real estate is handled by professionals and Banks.  The first bill provides assurance to distressed homeowners looking for assistance prior to foreclosure. It is unfortunate that homeowners in already distressed situations were preyed upon by unscrupulous professionals.  The second, provides for competitive assistance to people purchasing bank owned property.

Governor Schwarzenegger signed into law Senate Bill 94, which immediately makes it unlawful for any licensed attorney or real estate agent “who negotiates, attempts to negotiate, arranges, attempts to arrange, or otherwise offers to perform a mortgage loan modification or other form of mortgage loan forbearance for a fee or other compensation paid by the borrower…to claim, demand, charge, collect, or receive any compensation until after the [attorney or agent] has fully performed each and every service the licensee contracted to perform or represented that he, she, or it would perform.”

The second bill AB 957, provides that sellers of REO property, typically Banks, cannot dictate the title and escrow companies that Buyers will use when purchasing the Bank property.  “Homebuyers should have every right to choose their title, escrow and real estate service providers based on price and quality of service,” said Assembly Member Cathleen Galgiani. “AB 957 ensures that buyers can make marketplace choices that suit their own best interests, rather than getting forced to serve the financial interests of some international bank or other corporation.”

Both bills will have a positive impact on the distressed real estate market.  At Westwind Real Estate Services, Inc., we support the passage of these new laws and believe they are in the best interests of the consumer.

If you or someone you know is facing foreclosure, please visit our website, StopOurForeclosure.net so we can how we might assist in stopping foreclosure.   We work with distressed homeowners with negative equity, who are facing foreclosure.  If the property meets our criteria, we offer to purchase the property, negotiate directly with the lender and in doing so help the homeowner avoid foreclosure.  We do this at NO COST to the property owner.