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All,
Can anyone site the Florida law that pertains to buying foreclosures after the Lis Pendens has been filed?I realize it works better to buy the note, or become a lender, but there’s still a few deals where one would want to take title, and I’d like to review the risks.
Anyone had any issues with this law?
Thanks,
Larry OlsonLarry,
Even if you do all the right things, a hungry attorney could go looking for everyone who sold their house preforeclosure and convince them that they were taken advantage of. then they would go looking for other people you bought a house from and try to get a class action lawsuit going. They will come up with all kinds of things to charge you with. See below
Read this:
This article was in the Tampa Tribune on Saturday March 31, 2007 –
5 Convicted of Bank Fraud in Targeting of Homeowners – They siphoned off equity, officials say.Five Tampa area residents were found guilty this week of bank fraud and other charges stemming from a scheme to defraud mortgage lenders and homeowners out of the equity in their homes said Paul Perez, the US attorney for the Middle District of Florida.
According to the US Attorney’s Office, those found guilty by a jury were: Ramzy Moumneh, 37, of Tampa;
Kkamal Moumneh, 38, of Tampa; Chuong X. Dam, 33, of Tampa; Demetrios J. Voiklis, 32, of Tampa; and Kimberly Brothers, 28 of Riverview.Lucretia Junge, 31, of Land O’ Lakes, pleaded guilty to conspiracy to commit bank fraud and agreed to testify for the government, the US Attorney’s Office said Thursday.
The bank fraud charges each carry a maximum penalty of 30 years in prison and a fine of $1 million. Other charges, including mail and wire fraud, each carry a maximum penalty of five years in prison and a fine of $250,000. Sentencing dates have not been scheduled.
Patrick Doherty, a defense attorney in the case, was not available for comment, a spokeswoman in his St. Petersburg law firm said.
The defendants wee accused of targeting homeowners in Central and South Florida who were about to lose their homes through foreclosure. The US Attorney’s Office said in a statement that more than $2 million in homeowners’ equity was siphoned off by the defendants.
Another defendant, Amy Hudd of Spring Hill, will be tried separately, the office said.
Larry,
Jack Miller talked about this law in a conference call in November – a recording of the call is in the Learning Annex – under conference calls – look for the ones titles “foreclosure” something.
Here is what I found on the law – http://www.flsenate.gov/statutes/index.cfm?mode=View%20Statutes&SubMenu=1&App_mode=Display_Statute&Search_String=foreclosure&URL=CH0501/Sec2078.HTM
The problem is that today when you “help” a homeowner who is facing foreclosure they are thankful and gladly accept whatever you pay them. Six months or a year from now, they are back on their feet and regret the transaction and tell an attorney you “took advantage of them when they were vunerable” — so all the sudden you are the “bad guy”
Looks like you’d be facing a $15,000 fine at minimum – plus you’d have to give the house back
As Jack says, it’s not worth it to buy a house that has a lis pendens filed.
There are other ways to do the deal and Jack describes them in the conference call.
In other states, that fine is as high as $50,000 PLUS there could be up to 3 years in prison AND you have to give the house back!!
So, it is R-E-A-L-L-Y R-E-A-L-L-Y important for everyone to check out the foreclosure laws in your area and know here the boundaries are.
Jackie
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