Minion & Sherman
Call Us Today for a Free Confidential Consultation

New Jersey foreclosure scam protection law now in effect

When an Essex County household is faced with foreclosure, it can be a trying time. Many turn to professionals who can help try to stop foreclosure and expect that these professionals will uphold their best interests. Unfortunately in many businesses, including the foreclosure business, this is not always the case. Some individuals face scams, misleading information, and promises that cannot be fulfilled rather than the relief they need when trying to prevent a foreclosure.

With the increase of foreclosures in the state, it has become even more important to protect individuals from this behavior. The Foreclosure Rescue Fraud Prevention Act, legislation that went into effect last month, is directed toward providing these protections. The law requires mortgage foreclosure professionals to adhere to strict guidelines when working with individuals facing foreclosure.

One such guideline makes it mandatory for foreclosure prevention companies to post a bond with the Department of Banking and Insurance before carrying out any business in New Jersey. Additionally, this legislation provides contract rights to owners of homes that may be foreclosed upon who contract with these consultant companies. It requires the contracts be explicitly clear, and provides ways for an individual to end the business relationship at any time until all services are complete. Violators of this new law would be faced with specific penalties.

Stronger regulations will help prevent individuals from being scammed by dishonest consultants, but no law may completely rid the industry of these wrongdoers. Any Essex County household may benefit from taking time to research both the process to attempt to stop foreclosure, as well as the professionals they intend to seek assistance from. Taking care to seek assistance from an experienced professional can make the process of trying to stop foreclosure simpler and more effective from the start.

Source:, "New foreclosure law in effect," Stacey Rosenfeld, July 6, 2012

No Comments

Leave a comment
Comment Information


At the law offices of Minion & Sherman, our New Jersey bankruptcy attorneys have been providing families with real solutions for more than 20 years.

Email Us For A Response

Contact Us Today for a Free Consultation

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

West Caldwell Office
33 Clinton Road
Suite 105
West Caldwell, NJ 07006

Toll Free: 866-915-1839
Phone: 973-559-5791
Fax: 973-882-0856
Map & Directions

Newark Office
201 Washington Street
Newark, NJ 07102

Toll Free: 866-915-1839
Phone: 973-559-5791
Fax: 973-882-0856
Map & Directions