Expert Realty – South Florida Real Estate Blog

A new law by the Florida State Legislature could give homeowner’s a ray of sunshine in this bleak real estate market.

Starting October 1st, the Foreclosure Rescue Fraud Prevention Act of 2008 will provide homeowner’s with an extra layer of support against “rescue” firms that have been put into place to aid homeowners with payment scheduling.

According to the Sun-Sentinel, these foreclosure rescue consultants had been taking advantage of homeowners by getting them to sign over titles and failing to compose legally binding contracts alerting homeowners of their rights. One of which is the right to dissolve a contract within in 5-days of signing with a foreclosure rescue firm.

Now with the impending law, rescue firms using such unsavory tactics will face up to $15,000 in fines for each violation.

Homeowners are also advised to attempt to contact lenders themselves, since some willingly set up payment schedules at no additional cost.

According to the Florida Office of Financial Regulation, there are several types of foreclosure rescue scams you should be aware of:

·  Foreclosure Prevention Specialist – phony foreclosure counselors.

·  Phantom Help – charges high fees for work the homeowner could do themselves.

·  Lease/Buy Back – homeowners are deceived into signing over the deed to their home.

·  False Bailout – the homeowner is lead to believe that they can rent their home from the new owners and eventually repurchase the home.

·  Bait and Switch – the homeowner thinks they are signing new mortgage documents, but are actually signing over the deed to their home.

For more information on you can avoid homeowner rescue scams read the 2008 Consumer Advisory.