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Wed, Oct 14, 2009
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Law strengthens protections against
fraudulent mortgage rescue practices
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Gov. Jack Markell signed into law Tuesday, Oct. 6, legislation that clarifies protections of homeowners in foreclosure. House Bill 232 clarifies that companies that offer to negotiate modifications of secured debt, such as a mortgage, on behalf of consumers are subject to the provisions of the Mortgage Rescue Fraud Protection Act, which prevents companies from charging homeowners who are in foreclosure thousands of dollars in up-front fees to negotiate with loan servicers or lenders.
“Homeownership is good for families’ personal finances, and it’s good for our economy,” Markell said. “It is important that we help homeowners stay in their homes and protect their most important asset, especially during this downturn in the national economy.”
“Mortgage rescue companies have the upper hand when negotiating with financially distressed homeowners struggling to keep their homes,” said Attorney General Beau Biden. “This legislation makes it crystal clear that these vulnerable homeowners are protected under Delaware law from predatory practices.”
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Comment
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