AG's Proposal to Protect NM Homeowners OK'd...Legislature Passes Mo...

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AG's Proposal to Protect NM Homeowners OK'd...Legislature Passes Mortgage Foreclosure Consultant Fraud Act
Friday, February 19, 2010 State lawmakers enacted Attorney General Kings proposal to protect homeowners against mortgage foreclosure rescue scams by "foreclosure consultants." The Act ensures that homeowners are properly informed about their rights when they sign a contract with anyone offering, for a fee, to help stop or postpone a foreclosure. Full Article

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Full Article (SANTA FE)---State lawmakers enacted Attorney General Kings proposal to protect homeowners against mortgage foreclosure rescue scams by "foreclosure consultants." The Act ensures that homeowners are properly informed about their rights when they sign a contract with anyone offering, for a fee, to help stop or postpone a foreclosure. Attorney General King says, "When a family faces the loss of their home, they may resort to help from someone who promises to save their home but who really is only interested in taking their money. This legislation, sponsored by House Majority Leader Ken Martinez and Senator Peter Wirth, is designed to protect homeowners from

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AG's Proposal to Protect NM Homeowners OK'd...Legislature Passes Mo...

http://www.nmag.gov/Articles/newsArticle.aspx?ArticleID=915

those who prey on people in distress." The legislation bans mortgage "rescue" consultants from charging upfront fees, a red flag of fraudulent practices. The Act also provides a cancellation period that allows the consumer to cancel the agreement with the foreclosure consultant, requires notice to the consumer about their rights under the law, and requires a written contract disclosing the services to be provided and the fees to be charged. Any violation of this Act constitutes unfair and deceptive trade practices subject to the remedies and penalties of the Unfair Practices Act and may be prosecuted as a fourth degree penalty. Attorney General King also warns New Mexico homeowners to consult with a HUD-certified housing counselor before contracting with any foreclosure consultant who promises to save their home from foreclosure. ###

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