If you live in Texas read this ASAP

[Michelle Kasper]

SB354 in Texas Legislature threatens Preforeclosure Investing

In an effort to curtail so-called "foreclosure consulting", a bill introduced by Texas State Senator Craig Estes in the current legislative session contains provisions that will make it almost impossible for legitimate real estate investors to purchase pre-foreclosure property before the auction.

The bill would clasify anyone who "acquires title to a residence in foreclosure" as an "Equity Purchaser" who would then be deemed a "Foreclosure Consultant", subject to very onerous rules governing the purchase of preforeclosure property.

The most onerous provision would require the use of an Equity Purchase Contract that mandates the total consideration paid to the homeowner be no less that 82% of "fair market value".

You can review this bill and make your thoughts known by visiting www.capitol.state.tx.us, the website of the Texas Legislature.

To review the bill, click the Bill Number radio button at the top of their homepage and enter SB354 in the query field.

To send an e-mail to your state representative or senator, just use the "Who Represents Me?" dialogue box on the right side of their homepage.