New law to protect Florida homeowners from 'foreclosure fraud'
New law to protect Florida homeowners from 'foreclosure fraud'
A new law to protect homeowners in Florida from fraud has been passed this week. TheMoveChannel.com reports on the Foreclosure Rescue Fraud Prevention Act of 2008, which will come into effect on October 1st of this year.
Foreclosure filings are soaring in
Florida and across the
US, and the Act ensures that homeowners are fully informed of their rights before closing a contract with a foreclosure rescue firm.
The new law requires a foreclosure rescue consultant to be involved in proceedings. The consultant will try to arrange a new payment plan or other alternative to foreclosure, and will provide the affected homeowner with a written agreement before beginning any services.
This agreement must include a specific notice of the homeowner-in-question's right to cancel the contract, as well as detailing the cancellation procedure.
Under the new regulations, specific legal descriptions are needed for certain job titles, including foreclosure consultant. Such consultants are also prohibited from taking payment until all proceedings have been completed. When the new lae comes into force, there will also be a five-day cool off period during which owners can cancel a foreclosure rescue contract.
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18 June 2008
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