59.1-200.1 - Prohibited practices; foreclosure rescue. - Virginia Statutes

§ 59.1-200.1. Prohibited practices; foreclosure rescue.

A. In addition to the provisions of § 59.1-200, the following fraudulent actsor practices committed by a supplier, as defined in § 59.1-198, in a consumertransaction involving residential real property owned and occupied as theprimary dwelling unit of the owner, are prohibited:

1. The supplier of service to avoid or prevent foreclosure charges orreceives a fee (i) prior to the full and complete performance of the servicesit has agreed to perform, if the transaction does not involve the sale ortransfer of residential real property, or (ii) prior to the settlement on thesale or transfer of residential real property, if the transaction involvesthe sale or transfer of such residential real property;

2. The supplier of such services (i) fails to make payments under themortgage or deed of trust that is a lien on such residential real property asthe payments become due, where the supplier has agreed to do so, regardlessof whether the purchaser is obligated on the loan, and (ii) applies rentsreceived from such dwellings for his own use;

3. The supplier of such services represents to the seller of such residentialreal property that the seller has an option to repurchase such residentialreal property, after the supplier of such services takes legal or equitabletitle to such residential real property, unless there is a written contractproviding such option to repurchase on terms and at a price stated in suchcontract; or

4. The supplier advertises or offers such services as are prohibited by thissection.

B. This section shall not apply to any mortgage lender or servicer regularlyengaged in making or servicing mortgage loans that is subject to thesupervisory authority of the State Corporation Commission, a comparableregulatory authority of another state, or a federal banking agency.

C. In connection with any consumer transaction covered by subsection A, anyprovision in an agreement between the supplier of such services and the ownerof such residential real property that requires the owner to submit tomandatory arbitration shall be null and void, and notwithstanding any suchprovisions, the owner of such residential real property shall have the rightsand remedies under this chapter.

(2008, c. 485; 2009, cc. 203, 272.)