On October 13, Governor Swartzenegger passed assembly bill 957 also known as the buyers choice act. This bill gives the consumers the option of choosing who they want to use when they decide to buy foreclosed homes. It also allows them to chose their own title, escrow and any other vendor needed during the real estate transaction.
This bill was passed in hopes that it will save money out of the homebuyers pocket, as well as help out smaller privately owned companies who our really hurting since lenders are using bigger names companies for these services, which causes the homeowner more money in their purchase.
Homebuyers should be aware of this new bill and know that they now have options when purchasing their foreclosure. I mean why shouldn’t you? Its ultimately your purchase. The reason you weren’t able to before is because these lenders and banks probably have some sort of “referral” thing going on with these other big name companies. I mean, why else would they feel the need to rob these homebuyers of more money? Because that’s what they do!
If for some reason this new bill is not disclosed to you during your time of purchase, it is very crucial that you tell someone. The seller will be subject to penalty.
The bill is highly supported by the Escrow Institute of California, probably because they see that it is not fair for these privately owned escrow companies are suffering because these sellers are not allowing them to open these foreclosure sales. Foreclosures are more common sales on the market today, than traditional sales, leaving the said escrow companies practically out of business.
I believe that this act will help to bring the other entities in the Real Estate industry back up to par. By allowing them to take advantage of foreclosure deals, they will be given the opportunity to get their businesses back up to par, leaving less people without jobs. When there is no work to distribute and no money coming in, escrow companies simply cannot afford to keep some of their employees and this in turn causes the unemployment rate to continue to rise. If we can continue to have laws placed on these hard money lenders, banks and sellers then we can continue to work towards improving our economy and real estate market. Everything in general will seem to get better. When people have no rules, they tend to run wild and do what they want. Now that there are repercussions, these parties will be scared to act sneaky because they will face legal consequences.
New and seasoned homebuyers should always be schooled on the laws and bills that are being passed in your area. This will always assure a smooth transaction and purchase for you. Don’t let these people fool you into paying unnecessary money for unnecessary things. Just make sure to do your research and know that you do in fact have options and you will be good to go. Consult your Real Estate Professional with any questions or if you feel you have had the wool pulled over your eyes.