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Marsha411JD, Attorney
Category: Legal
Satisfied Customers: 20392
Experience:  Licensed Atty, 29 yrs exp in the practice of law.
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wht is the federal law of equity skimming or rent skimming

Resolved Question:

wht is the federal law of equity skimming or rent skimming can you show the leagle information
Submitted: 7 years ago.
Category: Legal
Expert:  Marsha411JD replied 7 years ago.

I'm not exactly sure about what your question is but if you are asking what federal laws prohibit the types of schemes known as equity skimming they are the Truth in Lending Act and Home Ownership and Equity Protection Act.
Customer: replied 7 years ago.
yes is was looking for information on the federal law what is applies to and for how long for example in many states there is a state law on equity skimming in colorado it is 18 months who does the federal law apply to and for how long
Expert:  Marsha411JD replied 7 years ago.

The Federal laws apply to all consumers and the companies that engage in this type of activity. If you are asking what the statute of limitations in on these laws then under both TILA and HOEPA it is one year.
Customer: replied 7 years ago.
if somone owned a house for 5 years and rented out all five in the last year let the house go in to default and kept taking rent during this default peroid. would that be equity skimming
Expert:  Marsha411JD replied 7 years ago.
No, that is not what equity skimming is.
Customer: replied 7 years ago.

i thought there were two types of equity skimming one in which somone agrees to buy house and make payments and then does not


and one who takes rent and does not pay it to the bank


is that wrong

Expert:  Marsha411JD replied 7 years ago.
Yes, the second type is not illegal in the sense that they don't have any liability to the tenant. They still will owe the regular debt to the lender for the unpaid mortgage but they are free to continue to collect rent as long as they hold title to the property. The laws I cited, don't prohibit that, only the first type that you described.
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