Date:


Honorable (                           )
Address


Dear  (Name)

I am writing you regarding Senate Bill No. 2699 “Foreclosure Consulting and Anti-Fraud Act,” that has recently been introduced.  As a member of the New Jersey Real Estate Professionals Association which is made up of 1700 companies which represents the following professions, Realtors, Mortgage Brokers, Title Abstract Companies, Attorneys, Appraisers, and Contractors we are strongly opposed to this bill.  This bill will have a detrimental effect on both the Real Estate Professionals that legitimately assist those in financial trouble and the homeowners themselves.

Recent articles in the New York Times have shown that New York’s effort in legislation similar to this has in effect harmed and been contrary to what was supposed to happen to homeowners in financial difficulty.

You will find a majority of people involved in our profession who are performing a service that is ethical and above board, unfortunately there may be a very, very small minority of individuals who are unscrupulous and may try to take advantage of someone in financial difficulty.

That is why we have a very strong consumer fraud laws in New Jersey.

Professionals in our industry perform services that truly help people when they only have limited options available.

The intent of the legislation is supposed to protect owners of distressed properties facing foreclosure were the bank is going to take their home.  Unfortunately the legislation makes it more difficult for legitimate professionals to help protect the homeowner from losing their home.

This process is far more harmful and damaging, than if a professional came in and assisted with the purchase of the home taking it our of the foreclosure process.

The legislation forgets some very important considerations for the homeowner; if they go into foreclosure the bank seizes the property, foreclosure will be on their credit report which will hurt them for many years to come and the ability to obtain a mortgage.  If you have a foreclosure on your record it affects your overall ability to obtain financing in the future, and secure new living arrangements since most property managers obtain credit reports.



As you are aware, if the property is seized they will not have anywhere to live because they will not have money to put down for a new place to live.

If a pre-foreclosure professional steps in to stop the foreclosure process, they can negotiate a deal with the home owner.  We actually help the homeowner get back on their feet, contributes greatly to the frail NJ housing market, and contributes in many ways to a NJ economy that is also on a dangerous slippery slope.

If a pre-foreclosure professional steps in to stop the foreclosure process, they can negotiate a deal with the homeowner that will keep a foreclosure from appearing on their credit report, give the homeowner enough upfront cash to be able to start again, and they will have maintained their DIGNITY.

The housing market is currently not experiencing the usual explosion of foreclosures, inspite of the sub-prime lending crisis, (The Otteau Report Second Quarter 2007) because professionals are assisting and working with those in foreclosure in selling their homes to have a second chance.  NJ gets taxes on any gains from the resale of the properties.

We must be careful that when we pass legislation that we do not have unintended consequences.  Unfortunately S-2699, as seen in New York, will have the opposite effect.  Based on this, and the enclosed material we hope and request that you will not support the passage of S-2699.

Sincerely,





Name

Company

A member of

The New Jersey Real Estate Professionals Association

A Coalition of Real Estate Professionals through the State of New Jersey