HB 2791? A Monstrosity

Posted March 6th, 2008 by Joe Kaiser

And who will write the checks that stop foreclosure in this state?

Dear Rob,

By requesting a new law designed to prevent foreclosure rescue scams, you’ve effectively doomed thousands of WA residents who might otherwise have been able to save their homes.

Now, with the certain passage of HB 2791, no investor will risk doing business with people in foreclosure and homeowners will have no one to turn to.

The result?

Foreclosures in our state will skyrocket.


Here is my recent email to Senator Brian Weinstein, listed as a sponsor of the bill.

Dear Senator Weinstein,

HB 2791 removes investors from the foreclosure marketplace, leaving Washington homeowners in foreclosure with few options. Does it make sense to create a law that causes more foreclosures?

I don’t think so.

While there are, undoubtedly, unscrupulous investors acting unfairly, the vast majority of real estate investors are honest, hardworking guys and gals who simply want to provide a service and get paid accordingly. With this bill, investors will no longer be willing to participate in the foreclosure arena.

HB 2791 may stop a foreclosure rescue scam or two, but in doing so it eliminates the single most effective solution available to people in foreclosure . . . real estate investors.

Who will take their place?

And who will write the checks that stop foreclosure in this state?

No one.

Instead, Washington homes that might otherwise have been saved will be sold at auction. Washington owners who might otherwise have been able remain in their homes will be evicted and on the street with no place to go and no money to get there.

Is stopping a few scams really worth the harm that doing so is certain to cause?

No, it’s not.

I predict foreclosure rescue scams will be reduced with its passage while foreclosures will now skyrocket (be sure to ask the AG how many foreclosure rescue complaints they’ve received – I’m willing to bet it’s statistically insignificant).

It’s clear there is a complete lack of understanding of the foreclosure process, the role we investors play, and what happens when there’s little time to save a home from foreclosure. I’m willing to educate you.

Feel free to contact me if you’d like input from a foreclosure investor.

Joe Kaiser
www.pushedtoshove.com

In the arena,

Joe Kaiser


11 Responses to: “HB 2791? A Monstrosity”

  1. olyguy responds:
    Posted: March 6th, 2008 at 1:11 am

    How “Big Brother” of the WA state govt to step and give us something that hurts us…all under the guise of helping us.

    If I didn’t know differently, I would think I was in a Philip K. Dick novel. In other words, the govt of WA is insane…and acts with their double-speak as if we are brainless.

    But then we all stood and watched while Rossi, who won the election, got illegally shoved aside in a process similar to the vote counting cessation ordered by the Repubs in the primary selection. I say “selection” since what took place could never be construed as an election.

    Good luck Joe!

  2. JT Brofft responds:
    Posted: March 6th, 2008 at 7:25 am

    Curious Joe…

    Did you receive a response from the State Senator regarding your letter…?

    I would be highly surprised if he was at all interested in your input, since it differs from their objective of transferring the blame of the problem onto unscrupulous RE investors, and your input seems to challenge their premise. Our Bureaucrats don’t seem to like it when their underlings attempt to dissuade the direction of their crusading battleship…

    JT

  3. Joe Kaiser responds:
    Posted: March 6th, 2008 at 8:56 am

    No response as of yet.

  4. Robert McNeely responds:
    Posted: March 6th, 2008 at 1:58 pm

    Hang in there Joe. I am from Ohio, also a state with lots of foreclosures. I am buying foreclosure houses on a regular basis, but at the sheriff sale, or from the banks. It is too bad that to protect ourselves we must wait until after good people have lost their properties. Good Luck.

  5. Joe Kaiser responds:
    Posted: March 6th, 2008 at 3:06 pm

    Lovely . . .

    HB 2791
    Distressed Property
    Senate vote on 3rd Reading & Final Passage as Amended by the Senate
    3/6/2008

    Yeas: 39 Nays: 6 Absent: 1 Excused: 3

    Voting Yea: Senators Benton, Berkey, Brandland, Brown, Delvin, Eide, Fairley, Franklin, Fraser, Hatfield, Haugen, Hewitt, Hobbs, Jacobsen, Kastama, Kauffman, Keiser, Kilmer, King, Kline, Kohl-Welles, Marr, McDermott, Murray, Oemig, Parlette, Pflug, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schoesler, Sheldon, Shin, Spanel, Swecker, Weinstein, and Zarelli

    Voting Nay: Senators Carrell, Holmquist, Honeyford, McCaslin, Morton, and Stevens

    Absent: Senator Hargrove

    Excused: Senators McAuliffe, Prentice, and Tom

    I’ll do a blow-by-blow breakdown of the new law as soon as the final version is posted. Stay tuned.

    Joe

  6. Drew Hitt responds:
    Posted: March 6th, 2008 at 3:41 pm

    What do legislators think this will accomplish? You’ll have more bidders at the auction steps buying these homes instead of working with homeowners to keep their homes. Here in Virginia they tried to pass similar legislation and it was axed by investors. Why would you not want to prevent foreclosures? Virginia HB 408 and HB 947 were proposed, our Foreclosure Prevention Task Force member appointed by the Governor, who is an active investor, helped repeal 947 and add it into 408. We lost the ability to do sale leasebacks, and apparently partnership agreements, but at least I still can be an investor, to some degree. The worse thing now investors are forgoing persons in foreclosure and don’t want to deal with them anymore. And now I have to tell people, it’s illegal to keep you in the house, I’d have to kick you out. That just doesn’t sound like the original intention of the law, but that’s what it has become. Looks like it’s time to go to the auctions, banks won’t lend to these people, we can’t help them now, guess it just gives the auction companies more money. Funny thing is, we have a member of an foreclosure trustee company on our Foreclosure Prevention Task Force, funny how that works out. More business for them, less for us.

  7. Drew Hitt responds:
    Posted: March 6th, 2008 at 3:52 pm

    Joe,

    How dumb are they going to feel when you win your case and the current AG is gone. I think those legilators are going to look back and think, oh that bill wasn’t such a good idea, it was created on the basis of a case that was defeated in court hands down. Woe is me.

    If you want to prevent foreclosure, you educate the masses so they don’t get themselves in over their head. You quit the media hype that made everyone jump in, and you keep loan products at a place where only people who truly can afford a home can get one. If you want to stop these foreclosures, you empower investors to get in there and solve the problem, make the banks take less than what’s owed and eliminate that foreclosure off their credit report. Just look at these ideas to give 4 Billion dollars to city housing authorities to rehab these homes, why not let investors use THEIR OWN money and do the exact same thing? I guess it always easier to use tax payer money, cities can always make more of that….plus no risk, you’re using Other Peoples Money. Wow, kinda sounds like everyone wants the Cities to become Real Estate Investors themselves….I guess we aren’t that bad after all…

  8. Warner responds:
    Posted: March 8th, 2008 at 12:20 pm

    Joe,

    In Georgia, the investors association (which apparently is the largest in the country) has created a Political Action Committee to lobby against stuff like this. Seems like you need more support from some organization so they don’t just run away with creating any type of insane laws they want. How much affect would the new law have on the way you currently do business? If legislators wrote it I’m sure there are some major loopholes in it…

    Warner

  9. anemonehead responds:
    Posted: March 10th, 2008 at 5:52 am

    Warner,

    You hit the nail on the head, lobbyists!

    If you follow the money I’d be willing to bet that NARs, National Association of Realtors has a big hand in this type of legislation that is getting passed all over the country. NARs being concerned that their members aren’t getting their “rightful commission” on every RE transaction.

  10. David Alexander responds:
    Posted: March 10th, 2008 at 9:30 pm

    Wow!….

    I think Ohio… foreclosures doubled as a result of these kinda of laws…..

    Went from I think 3% to 6%…..

    And what’s this about the homeowner should get 82%…. since when can our government tell us what we can buy and sell for…. good grief…

    They obviously don’t understand the circle of life… there are people out there…. (investors) who pick up the pieces to keep things moving…

    Most of the bad fraud stuff is happening in the builder and mortgage broker arena posing as investors…

    And how about those guys that created all this crazy paper and sold the story to wall street and lenders about how good an idea it was to finance anyone and everyone at 100% because values always go up…. and with a prepayment penalty you get them coming and going…

    Then they brokered the paper to wall street and walked away leaving the lenders and america holding the bag….

    Those are the guys they should be going after…

    It’s easy to make laws from Ivory towers… from whence you are far removed from real life…

  11. DaveD (WI) responds:
    Posted: March 12th, 2008 at 6:02 pm

    While I haven’t reviewed the law, would I be right to guess it should be more aptly named “the WA County Treasurers Protection Act?”

    Is it being toooo cynical to point out the true winners in the foreclosure game going foreward will be said Treasurers who know a certain percentage will escheat… and as the numbers of foreclosures rise, so too will the aggregate dollars? Funny how the county benefits from all that consumer protection, eh?


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