Business

<< Previous   of   Next >> Kevin Nortz / The Herald  (click to enlarge) Keller Williams Realty agent Stacey Siep stands in front of a home that recently went through foreclosure in Lynnwood.   ADVERTISEMENT   CONTACT THE HERALD Mike Benbow, Business Editor benbow@heraldnet.com   Published: Sunday, June 29, 2008 Real estate agents leery of anti-scam law Until glitches in rules and liability provisions are worked out, real estate agents are steering clear of distressed properties. By Eric Fetters Herald Writer A new law designed to protect homeowners from foreclosure rescue scams has raised confusion and concerns from real estate agents. Some agents are worried that about the new law's provisions, which could hold them liable if anything goes wrong in a transaction involving so-called distressed properties. Those include homes either in foreclosure or close to it, or properties on which owners owe back taxes. Because of the new rules and liability for real estate professionals, some agents are shying away from distressed properties. And that makes it harder for those owners to get help. "The very people this was designed to help, it is instead having the opposite effect," said Arnie Hansen of Snohomish Properties. "They're throwing the baby out with the bath water." Hansen said he's still unsure on all the possible ramifications of the law, known as House Bill 2791, even after reviewing it personally numerous times and showing it to his attorney. The confusion is understandable, said Kristin Alexander, spokeswoman for the state Attorney General's Office, which originally proposed a law to save consumers from foreclosure scams. Under such schemes, desperate homeowners have been lured by offers of assistance, then cheated out of the equity they've built up and tricked into transferring ownership of their homes. Often, Alexander said, homeowners who fall victim to such scams are unaware they've lost their property until they receive an eviction notice. "We wanted to address that problem before it got worse," said Alexander, adding that a number of other states have passed laws to discourage foreclosure scams. The law that resulted, however, turned out different than intended. "We're certainly aware there are issues with the law," Alexander said, adding that Attorney General Rob McKenna's staff and real estate industry leaders plan to meet this summer to discuss how to fix provisions of the law. The amendments could then be presented to the Legislature early next year. That would be welcome, said Stacey Siep, an agent with Keller Williams Realty's Bothell office. She has worked with distressed properties for years and saw victims of foreclosure scams, so she supports the law's aim, but agrees the details weren't completely thought out before it passed the Legislature. The sticky part of the law involves the term "distressed home consultant," language that was inserted by legislators. Because the term of who is a distressed home consultant is so broad and can become legally liable, that has scared off some agents. That's worrisome, because a real estate agent can be a real help when a homeowner gets behind on mortgage payments and needs to sell, Siep said. "When a homeowner becomes distressed, they need to contact a real estate agent," she said, additionally recommending that homeowners ask agents for credentials and a resume. The Attorney General's Office, Washington Association of Realtors and Northwest Multiple Listing Service all are working to bring real estate agents up to speed on the distressed properties law. Karen Schweinfurth, past president of the Snohomish County-Camano Association of Realtors, said that once agents learn more, the new law isn't so scary. Hansen said he hopes the Legislature holds a special session this year to fix the distressed home law, because it's an important issue at a time when foreclosure rates are much higher than usual. Alexander said that's unlikely, however. In the meantime, Siep said homeowners in trouble should be cautious about anyone who approaches them with a "rescue" deal that seems too good to be true. "I've seen so many scams come up," she said. The Attorney General's Office recommends that homeowners in trouble ignore signs, fliers and hand-written notes offering foreclosure help. Scam artists typically advertise their "services" on posters pinned to utility poles and fliers dropped on porches. They also contact people whose homes are listed in public foreclosure notices. Most importantly, as always, read everything and don't sign any papers you don't understand. Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.

1. Good grief! 2. Swine flu lingers, making traditional flu season unpredictable 3. Two vie to serve as Snohomish County prosecutor 4. Last hurrah for Huskies’ Locker? 5. Koster for Congress? He’s still undecided 6. Here’s how home foreclosure sales really work 7. A store credit card can save you cash, but is it worth it? 8. New site sought for Snohomish pool project 9. Families get an early gift: free Christmas trees 10. Prep Roundup: Lake Stevens wins two wrestling meets 2 - Top 10 Stories Most Talked about 3 - Top 10 Stories Most Emailed

• Wildcats fall to familar foe in semis • ‘Nutcracker' times three • Road warrior • Mavericks reloading • Holiday Lightings & Santa Sightings • Cities prepare for winter blast repeat • Wolfpack duo takes last shot at state tourney • This Weekend in Your Town • Tips for the stormy season • Boeing will build, flight test and deliver 787s in South Carolina to spe ... • Snohomish County EDC promoting job growth in key industry clusters • $4 million grant to advance brain tumor research has Everett links • Providence medical center construction tops off its 12-story steel frame ... • Tulalip affordable housing project to be financed by KeyBank, Raymond Ja ... • Arlington's Lak of Ink has a growing following for Luke Kooyman's creati ... • Bank of the Northwest formed • Cascade Bank earns $1.6 million