Florida Approved Foreclosure Fraud Bill

Because of the increasing number of Americans who default on their monthly mortgage payments, it is expected that mortgage foreclosure rescue scammers will continue to proliferate.

Members of the Florida Senate have passed a foreclosure fraud measure aimed at regulating companies that offer services claiming to help homeowners of distressed properties.

The bill will try to control the increasing number of equity purchasers or equity strippers and consultants who have been charged of preying on homeowners of foreclosed homes.

According to Senator Mike Fasano, the bill is intended to bring transparency to the business of providing mortgage rescue services to distressed homeowners.

The legislation requires these companies to provide clear disclosures in contracts to allow homeowners to know their rights. Under the bill, homeowners have three days to withdraw from any contract.

Also, consultants who ask for advance payment in exchange for helping homeowners deal with mortgage lenders would be prohibited from receiving payments before their promised or agreed services are carried out.

The bill, which was proposed in response to the increasing number of cases in which consultants ask and accept payments and do nothing to help homeowners avoid foreclosure, will also enhance consumer protections and provide alternative for distressed borrowers who have been conned.

Avoidance is still the best way to protect oneself from scams. However, homeowners who are desperate will believe anything that is offered to them if it will provide a solution to their problem.

That is why it is still in the best interest of distressed homeowners to contact a counseling agency. Just make sure that the agency has a Department of Housing and Urban Development (HUD) certification.

By Cassiano Travareli