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: NorthJersey.com, “New foreclosure law in effect,” Stacey Rosenfeld, July 6, 2012