There is currently a growing group of states which have enacted legislation that could impact how you participate in foreclosure and/or preforeclosure activities in those states.

Generally speaking, such legislation may regulate both consulting activities and activities where you in fact purchase the property and/or re-convey it back to the owner. The laws tend to impose detailed contractual requirements and disclaimers along with a right of cancellation for a mandated time period. It is not uncommon for these laws to curtail certain conduct and limit the compensation/profit you may receive in connection with foreclosure and/or preforeclosure activities. Finally, many of these laws could be interpreted to prohibit you from taking an interest in a property under certain circumstances, and as such, could hinder techniques we teach to protect the investor.

Violations of these laws typically result in both civil and criminal penalties, including multiple damages, fines and terms of imprisonment. As of September 6, 2006, we are aware of nine states which have enacted legislation affecting foreclosure and/or preforeclosure investing: California, Colorado, Georgia, Illinois, Maryland, New York, Missouri, Minnesota, and Rhode Island.

If you are aware of other pending or passed legislation, please let us know. And if you plan to invest in foreclosures, be sure you learn the correct strategies as well as know and comply with the laws of your state.

Jackie