New...Distressed Property Legislation

The Washington State legislature recently passed legislation titled Distressed Property Law (HB 2791) which is intended to prevent "equity skimming." The legislation becomes effective June 12, 2008.

"Equity skimming" occurs when homeowners are having difficulties making mortgage payments but have built up some equity in their home. A buyer contracts to buy the home with the provision that the homeowner can continue to occupy the house as the tenant. Then re-purchase it at "fair market value" sometime in the future. The buyer quickly sells the house and pockets the equity leaving the tenant "high and dry"...no home, no equity and no place to live.

The legislation is very complex so here's a link to information posted on the the Washington REALTORS website if you would like more information.

BTW: If you are having trouble making your mortgage payments, contact your lender (the company to whom you make your mortgage payments) if you haven't already done so and attempt to "work out" the situation.