Home Equity Law to Watch Out For

Wrote about the Mortgage Foreclosure Consultants Act earlier. A similar law is also in effect in California which regulates the transfer of real estate by "equity purchasers". This is distinguished by law from loan transactions. Main issue is whether the seller was unfairly coerced into transferring his/her property to a lender. Key point is that a five-day cancellation period is in effect, and not much can happen during that period. There's also an attorneys fees provision if a suit is brought, as well as a provision for possible criminal penalties. Every person who helps distressed homeowners should know this act. It doesn't say you can't help someone out, or do it for a profit. You just have to do it in a manner which the law allows.