HB 2791 – What happens next?

Posted June 2nd, 2008 by Joe Kaiser

This new law, no matter how you attempt to parse it, falls directly on your shoulders, Rob.

Dear Rob,

You may recall that way back on March 6 of this year I called HB 2791 a “monstrosity.”

I didn’t know it at the time, but the bill that ultimately passed was that and then some and everyone in the industry now considers it a major debacle from the Office of the Washington State Attorney General.

Between you and me, they ain’t seen nothin’ yet.

Letting unqualified attorneys draft new law without any real understanding of the industry was a obvious error, and it shows precisely how things work in your arena.

So what happens next?

Finger Pointing

I’ll pencil it out for you . . .

The next thing you will do is attempt to distance yourself from this ridiculous new foreclosure law, and you’ll do that by saying the bill as passed wasn’t the bill you’d intended.

You’ll say it got hijacked in committee and the folks who got in there and screwed it up are to blame, not you.

And you’ll be pointing the finger at Brian Weinstein to name just one.

Sound about right?

Nothing but problems

There’s more the a few problems with that particular strategy.

First, it fails to consider that your office concocted the need for this bill in the first place. We now know the entire foreclosure rescue scam epidemic in this state was something you made up. The existence of just four actual complaints proves it was nothing more than a hoax from the outset.

Next, the 82% thing, in your version, was based on the owner’s equity. That’s insane. At least in the final version it considers the property value and not the equity, a major improvement (although pretty much a deal killer just the same).

And finally, let us not forget that your guy, Assistant Attorney General Jim Sugarman, testified before the legislature and encouraged the bill’s passing. In doing so, he put your stamp of approval on it, forever connecting you to the lunacy that is HB 2791.

Don’t blame me

So, as the schmidt hits the fan in the next few months and the consequences of the new law are felt by investors, agents, and homeowners alike, I expect you to come forward and say “This is not the law we asked for.”

In doing so, you demonstrate yet again that you do not understand the business of real estate, nor do you take into account the risk of potential “bad law” outcomes whenever requesting new laws from the folks in Olympia.

In this instance the risk far outweighed the reward and it’s why one does not ask for new legislation on a whim, or, as with HB 2791 . . . on a story you all just made up.

This new law, no matter how you attempt to parse it, falls directly on your shoulders, Rob. And now you’ll just have to deal with it (until some right-minded judge overturns it, that is).

In the arena,

Joe Kaiser

4 Responses to: “HB 2791 – What happens next?”

  1. Frank responds:
    Posted: June 2nd, 2008 at 2:05 pm

    Joe – can you tell us when this whole thing goes to trial? With all the evidence you’ve layed out here I don’t see how they would expect to win. It would be nice if you can publish it here what the timeline of events are and when you might expect this nightmare to end. I support you 100%!! Your blog has really opened my eyes though as to the ignorance of county officials and lawmakers who apparently are more interested in running their own agenda than understanding the business that they are trying to ‘fix’ through new legislation. Keep going buddy – I can’t wait for you to knock their socks off at trial!

  2. Chris responds:
    Posted: June 2nd, 2008 at 2:51 pm

    Joe, I think you are being a little naive.

    They’ll get one complaint next year, and will proclaim that, through their actions, real estate scam complaints are down 400%

  3. anemonehead responds:
    Posted: June 2nd, 2008 at 9:30 pm

    Right minded judge in WA?

    You’d probably have a better chance of meeting Santa Claus or the Easter Bunny.

  4. Joe Kaiser responds:
    Posted: June 2nd, 2008 at 9:39 pm

    Okay, rephrase that . . . “clear-thinking” judge.

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