A State Warning on Foreclosure Rescue Scams

10 November 2008

Author: admin Posted under Foreclosure Crisis

The issue of foreclosed homes is a widespread problem in Miami, from the southern areas of Miami-Dade County to the areas of Northern Broward County.

According to lawmakers, once families are not able to make payments, they step out of their homes, the homeless move in, and the neighborhood crime climb up. More robberies, burglaries, and personal assaults are reported according to Coral Spring’s vice mayor.

Since homeowners are desperate not to lose their homes, they tend to say yes to foreclosure rescue loans they cannot really afford.

Having seen the problem on foreclosures getting worse, the state of Florida decides to step in to help, attacking the problem at its roots.

As a move, the governor has released a new law, which is the Foreclosure Rescue Fraud Prevention Act. This draws barriers between troubled homeowners and the people taking advantage of their situation, by coming up with payment plans. Oftentimes, such deals are said to be too good to be true.

One of the provisions of the new law is requiring rescue consultants to supply a contract with a grace period of three days. Furthermore, what should be contained in the contract are disclosures that advise the borrowers to contact their mortgage companies prior to closing any deals with anyone.

What the state actually points out is putting up a lot of safeguards making them impossible to sign contracts and hold them responsible if they are not able to do all the steps involved.

Rescue consultants often seem to have genuine intentions as they help desperate homeowners save their houses. However, there are some who just take advantage of the homeowner’s situation so it is advisable to be extra careful in dealing with such people.

The initiative shown by the governor of Florida is a commendable one since it is a good move in keeping homeowners away from foreclosure rescue scams.

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