Everybody in authority, including the attorney of the local MLS, state clearly that condos are (by mistake) exempt from this law (unless there are only 4 units in a complex). None of the real estate agents I know is staying away from condos but many are avoiding distressed properties as defined by the law. You are right about the law contributing to the increase of foreclosures.

This may not necessarily exclude condos. If the property in question is one condo in a building of six, it could be argued that the property in question is only one residential unit.

I bring this up because I am currently in the market to purchase a condo and I am stearing clear of any potentially “distressed home owners.”

With such vague language I do not want to be the first case that interprets the legislatures intent.

This legislation is only going to increase foreclosures because it is better for the buyers to wait for the bank to own the property before making an offer.

Without Realtors and Investors to help distressed sellers get out of their houses and loans before the auction, more properties will be going to foreclosure. If there is no one to buy these homes prior to auction the banks are going to end up with a lot of REOs.

There are a lot of honest, sincere and ethical realtors and investors that have assisted many of these homeowners in the past. Now there is just too much liability in trying to help someone.