Foreclosures in New Jersey are on the rise and homeowners are increasingly being exploited by “foreclosure consultants” who offer assistance, but instead take a person’s money and do nothing. Now, lawmakers in New Jersey have introduced a law to protect homeowners from fraud.
The Foreclosure Rescue Fraud Prevention Act will assure that homeowners retain the power in a transaction.
These foreclosure consultants use a variety of shady tactics to scam a person in the midst foreclosure. One of the more common abuses occurs when these rescue agencies purchase a home at and allow the homeowner to rent the property. They often make these offers when the homeowner owes less on their mortgage that the value of their home.
Under the new act, purchasers must offer the homeowner 82 percent of the fair market value of the home. Some of the added protections include requiring written contracts, consultants are forbidden to collect fees upfront, and must make contracts available in a language the homeowner is comfortable with such as Spanish.
Foreclosure fraud has been on the rise in many states and many people have been victimized by these predatory practices. One of the surest ways to prevent becoming an unwitting victim of a scam is to turn to a foreclosure attorney for help.
The foreclosure process is complicated and people may feel they have no hope for keeping their homes, but a foreclosure lawyer can offer a number of alternatives, which depend on a homeowner’s circumstances. Many qualify for a loan modification or have the legal grounds to challenge the bank. Others may not be able to keep their homes, but can stop foreclosure through a short sale.
A foreclosure attorney will chose the best option for their clients and be there to lead them through the process.