Foreclosure Rescue Scams

The possibility of losing your home to foreclosure can be terrifying. The reality that scam artists are preying on the vulnerability of desperate homeowners is equally frightening. Many so-called foreclosure rescue companies or foreclosure assistance firms claim they can help you save your home. Some are brazen enough to offer a money-back guarantee. Unfortunately, once most of these foreclosure fraudsters take your money, they leave you much the worse for wear.

Helping Families Save Their Homes Act of 2009 (H.R. 1106)

The Helping Families Save Their Homes Act will give authorization to bankruptcy courts to modify the terms of mortgages made on homeowners’ primary residences, a practice which is barred by current law. The bill, when passed by both houses, would permit bankruptcy courts to restructure the debt on home mortgages by reducing the principal owed, extending repayment periods, reducing interest rates, and prohibiting, reducing, or delaying future interest rate increases. Bankruptcy law currently permits such restructuring only for vacation homes, family farms, and yachts. Under this bill, eligibility is limited to homeowners with mortgages originated before the enactment of the legislation who have received notice that a foreclosure may be commenced. The legislation restricts the situations in which bankruptcy judges can reduce – or “cram down” – the principal owed.

Foreclosure Rescue Scams

Here’s an excellent article by the California Office of Attorney General on avoiding home  foreclosure scams.

If someone who is not your mortgage lender promises to save your home and asks for you to pay money up front, WATCH OUT. Fraudulent foreclosure consultants target homeowners who are behind on their mortgage payments.

Here’s what you can do to avoid becoming a victim:

National Consumer Protection Week

Servicemembers Civil Relief Act
(formerly known as The Soldiers’ and Sailors’ Civil Relief Act of 1940)

Continuing with our spotlight on National Consumer Protection Week, here are some great Q&A’s about the Servicemembers Civil Relief Act provided by the U.S. Department of Housing and Urban Development.

Who Is Eligible?

The provisions of the Act apply to active duty military personnel who had a mortgage obligation prior to enlistment or prior to being ordered to active duty. This includes members of the Army, Navy, Marine Corps, Air Force, Coast Guard; commissioned officers of the Public Health Service and the National Oceanic and Atmospheric Administration who are engaged in active service; reservists ordered to report for military service; persons ordered to report for induction under the Military Selective Service Act; and guardsmen called to active service for more than 30 consecutive days. In limited situations, dependents of servicemembers are also entitled to protections.

National Consumer Protection Week

I’ve focused in on two main areas today relating to the home foreclosure crisis: Identifying and Avoiding Home Foreclosure Scams.  This information, provided by the Federal Trade Commission, is the 3rd installment this week highlighting topics relating to National Consumer Protection Week. I hope you’ll find this information helpful and please share this with your family members or friends. I’ll post two additional topics before the week ends so please check back.

Inside The Meltdown

I have posted a copy of Frontline’s documentary, Inside The Meltdown, at my website which you can link to here. This film takes a chronological look of what went wrong with America’s economy while focusing on various factors leading up to our current monetary crisis.