Foreclosure Scheme
Coakley cracks down on foreclosure schemers
By Jay Fitzgerald found at Boston
Herald General Economics
Friday, June 1, 2007
Attorney General Martha Coakley today imposed emergency regulations to crack
down on “foreclosure rescue” schemers who have been accused of cheating
homeowners out of their properties.
The regulations, coming amid a surge of foreclosures across the state, would bar
so-called “rescuers” from making profits on homeowners struggling to pay
their sky-high mortgage payments.
“Rescue” schemes often involve companies taking over homes of those facing
foreclosure, but also stripping the equity out through “inflated mortgages”
and fees for dubious services. One tactic has involved persuading homeowners
faced with foreclosure to “temporarily” sign over their home in exchange for
financial assistance, which may never arrive.
The new regulations do not apply to non-profit groups or family members who step
in to try to help people burdened with huge mortgages, often obtained through
subprime lenders.
Coakley, whose office has been battling companies that offer complex
transactions claiming to lessen the financial pressure of mortgages, said the
regulations are effective today and valid for 90 days.
The regulations could become permanent after public hearings are held.
Coakley’s office vowed to review and possibly implement other reforms to deal
with the foreclosure “crisis” gripping the state.
“These ‘rescuers’ take a bad situation - foreclosure - and make it worse
by liquidating any remaining equity in the homes,” Coakley said in a
statement
foreclosure mess
Antwerpen Real Estate
