Foreclosure Rescue Deals Banned by Massachusetts AG
Sunday, September 16, 2007 10:42Foreclosure Rescue Deals Banned by Massachusetts
A new regulation was recently announced by Massachusetts Attorney General Martha Coakley. 940 CMR 25, “prohibits predatory, for-profit foreclosure rescue transactions,” according to the press release issued on September 4, 2007.
Once again, politicians and the media are ignoring the fact that there are many honest and ethical foreclosure rescuers out there. Banning everyone is a disservice to many homeowners.
The new regulation prohibits predatory, for-profit foreclosure rescue transactions. Foreclosure rescue transactions between family members or arranged by a non-profit community or housing organization are not banned under this regulation. The new regulation also makes it an unfair or deceptive act to market foreclosure-related services without a precise description of how the promoter will assist persons in avoiding or delaying foreclosure. The regulations define a “Foreclosure Rescue Transaction” as a transaction designed to avoid foreclosure and where the homeowner transferring the property maintains an option to reacquire the home by maintaining a legal interest in the home.
On June 1st, Attorney General Coakley announced emergency regulations that placed a temporary ban on these types of unfair and deceptive foreclosure rescue schemes as part of her multi-faceted plan to address the foreclosure rescue crisis in Massachusetts. The regulations went into effect immediately and were valid for 90-days. After a public hearing held on Thursday, August 30, in Boston, the regulations were promulgated as final.
P.S. Check This Out – Foreclosure Defense Secrets – Click Here!
