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REAL ESTATE National Association of Realtors Whining

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New Contributor
Jan 4, 2008
It seems we are moving ever closer to socialism. You heard it here.


U.S. Senate Plans to Consider "Foreclosure Rescue Scam"


· Legislation Expected to be Introduced Soon.

· Measure Likely to be Modeled After Minnesota Law,

· But May Contain Additional Restrictions Harmful to Investors Nationwide

February 22, 2008 (U. S. Senate)

Wisconsin Senator Herb Kohl has announced plans to introduce legislation aimed at curbing the rise of 'foreclosure rescue scams' - using a model which may include restrictions that could be harmful to all real estate investors. The measure is likely to contain some or all of the following provisions:

· Ban on leasebacks-to-owners

· Ban on upfront foreclosure consultant fees

· Ban on all "subject to" transactions

· Limitations on an investor's ability to purchase or take an equity
interest in a home in default

· Ban on all advertising related to "Saving Homes from Foreclosure"

· Restrictions on real estate seminars, which could even apply to Real
Estate Investor Association meetings

The measure is likely to be modeled after a 2004 Minnesota law that governs real estate investors. The National Association of Realtors (NAR) has proposed the Minnesota law as an acceptable model for the entire United States. However, it should be noted, the members of NAR are exempt from this law. (Also noteworthy - in the Minneapolis / HennepinCounty area alone, foreclosures have increased more than five-fold since the 2004 passage of the Minnesota statute.)

On behalf of real estate investors at the national level, the National Association of Responsible Home Rebuilders & Investors (NARHRI) is already tracking this legislation. NARHRI Executive Director John Grant says that NARHRI will offer alternative legislation from the Commonwealth of Virginia, which has the support of the local realtors, lenders, consumer groups, and which recently passed the House unanimously.

NARHRI expects to see intense political pressure for passage of the legislation before members of Congress leave in the fall. NARHRI indicates it will be providing updates on this effort as circumstances warrant.

We are distributing this alert as part of our continuing effort to inform investors and urge your support for the work of TexREIA and NARHRI at both the state and federal levels. The U.S. House of Representatives will likely also act on this issue shortly, and lobbying and public relations efforts will involve hundreds of meetings with members of Congress and staff, preparation of letters, white papers, and testimony, advertising in Capitol Hill media outlets, and extensive outreach to the Federal Trade Commission.

Please show your support, and invest in your own future as an independent investor, by joining TexREIA today as a member, or making a donation, at

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Gold Contributor
Read Millionaire Fastlane
Summit Attendee
Speedway Pass
Jul 27, 2007
Washington DC
same thing going on in Virginia, Maryland and DC, at the state level.
now, how convenient that realtors would be exempt.... Just think about it, you take a 30-hour class, pass the exam, pledge your alliance to the force, and that's it, you are now OK to "help" distressed homeowners.


New Contributor
Jan 4, 2008
It's a joke isn't it. Business slows down so what better way to eliminate the competition than to get the big bad investors. The NAR is fighting for their very existence and their dues. The 6% middleman fee is really no longer necessary due to the Internet yet legislation is being made as we speak to keep that 6% in place.

If they make it any easier for realtors I may have to go get the license again. Getting the stupid license makes me exempt, sweet! I've met a lot of realtors and most of them have never even read a deed, a deed of trust, or even the contract they should be using everyday.

It's sort of obvious who is pulling the strings on this whole thing.


New Contributor
Sep 14, 2007
Tampa Bay, FL
Wow! We know who has paid for the right lobbyists if this crap passes.

*Limitations on an investor's ability to purchase or take an equity
interest in a home in default *

So we cant even buy investment property if a home is in default? Does this mean that everyone in foreclosure will be limited to selling to someone who will live in the home?

* Restrictions on real estate seminars, which could even apply to Real
Estate Investor Association meetings *

This is laughable. The government cannot dictate whether people decide to meet in one place and speak to each other.

If something like this passes, and Obama gets into the White House, I think I will start looking at living elsewhere in the world. I can only hope I will be able to afford the move after I pay taxes!


Read Millionaire Fastlane
Aug 28, 2007
Round Rock, TX
It's sad that when a temporary problem hits this country (or individual states), our "leaders" panic and try to fix the problem by causing more problems.

In Texas a few years back, a group from Houston decided that many people were being scammed by investors doing lease/options and lobbied a few reps in their area to pass legislation to drastically curb the process. It was gaining ground in the house before REI's in the state caught wind and took action. While fighting the House version of the bill, REI's were "unaware" there was a Senate version also and it swept through while people were trying to kill the House version. The Governor signed the bill, and L/O' were basically outlawed in Texas (unless the property you owned had no liens whatsoever, including DOT's). Last year another piece of legislation was being pushed through to severely limit Sub2's by forcing people to close at a title company (i.e., no "kitchen table" closings anymore), but I'm not sure what the final verdict was with that bill.

Also last year, I was reading a piece where some people were going to attack the stranglehold agents, et al, have regarding the MLS by trying to open it up to other people. Along with it was a measure to rework the commission agents/brokers get from selling properties. Both measures were quickly lobbied against by NAR.

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