LEGAL ALERT REGARDING FTC MARS RULE AND SHORT SALES
|
18-Jan-2012
With no sign of short sales going away any time soon and the ongoing need of legal representation to distressed homeowners, Arizona's legal market is being saturated with more and more attorneys who now “dabble in” real estate law and want to jump on the short sale band wagon.
Many of these attorneys are offering their services on a "flat fee basis." What these attorneys presumably do not know, however, is that flat fee earned upon receipt billing arrangements are strictly precluded pursuant to the new FTC Mortgage Assistance Relief Services Rule (the “MARS Rule”). 16 CFR Part 332. Moreover, anyone who knowingly assists an attorney, including REALTORS®, who violates the MARS Rule, may also be subject to violation and penalties under the new MARS Rule. Davis Miles and Attorney Christopher J. Charles are experienced lawyers and have represented literally hundreds of distressed homeowners regarding short sales. If you or someone you know is facing questions regarding their distressed property, please call us and we will be happy to help in any way that we can.
For more information about the MARS Rule, you may visit the following links: www.ftc.gov/os/fedreg/2010/december/R911003mars.pdf
http://www.aaronline.com/azr/2011/march/mars-rule-requirements-for-short-sale-brokers.aspx
http://business.ftc.gov/documents/bus76-mortgage-assistance-relief-services-rule
|