RCW 61.34 and similar acts in Oregon, Nevada and California

[Patrick Britton]

As all wholesalers in the state of Washington know or should know, RCW 61.34 is the Distressed Homeowners Conveyance Act.  In short, this act basically forbids wholesalers to deal with owner occupied properties. While its intention is good, i.e. prevent equity skimming, it has another result, due to its poor verbiage, that prevents many pre-foreclosures from getting the help they need.

While not all is lost as there are many non-owner-occupied properties to work with, it is nonetheless a hindrance. 

Is anyone aware of any similar acts, rules, regulations, laws, etc., in states of Oregon, Nevada or California? Based in my initial research, it appears that Washington is in fact the only state in the union which forbids wholesalers to work with owner occupied, but I thought I would reach out to the Bigger Pockets community for confirmation.

[Jay Hinrichs]

@Patrick Britton 

  yes both states have the same acts... I sent you a PM on the subject.

Bottom line In Oregon you need to be a licensed Foreclosure consultant to help defaulted Owner occs legally.. Now we know this is violated by many who should know the law but don't and or don't care.

But it is a felony if your one of the unfortunate ones the AG decides to go after.

A licensed foreclosure consultant is   1. A RE Broker  2. NMLS MLO  3. Lawyer.

the law basically put anyone who wish's to follow the law out of the pre forclosure SUB TOO business we stopped the day the law was enacted.. I am a RE broker and A NMLS banker so I could have continue.. But the law also only allow the buyer of these assets to make a very small % on a flip the rest must be given to the Trustor. So its just not worth it..

Of course like much of the wholesaling that goes on Nationwide what one state says is OK the other says is not and those that learn the general methods taught by Gurus or here on BP may or may not care about the laws as they read it here or from a Guru and just plunge ahead... But when you get a love letter from the AG then it gets serious  :)