NEW FORECLOSURE LAW
EFFECTIVE OCTOBER 1, 2008

Effective October 1, 2008 a new foreclosure law will go into effect in Florida. This new law will eliminate “subject to” on a primary residence in foreclosure and a person in foreclosure on their primary residence will have 3 days to change their mind when selling their house. This is similar to a refinance of a mortgage where the Seller can decide whether or not to keep the new mortgage on the property.

In addition, Real Estate Agents could be responsible for knowing the status of the Seller's mortgage as well as whether or not they are in foreclosure. As a result of this new law, many Real Estate agents and investors may just choose not to help people in foreclosure because of all the extra potential liability and as this new law will limit the ability to collect any up front fees, as some short sale negotiation companies do and the seller will be restricted from paying them.

For more information the new law can be reviewed by going to MyFloridaHouse.gov. If you are a seller or a buyer/investor and would like more information on how this new law will affect you, please do not hesitate to contact me.

Dawnmarie Hatfield, Realtor ®, TRC