Foreclosure Rescue Scams Banned

The Attorney General of Massachusetts Martha Coakley has put a ban on the foreclosure rescue scams that victimize the Americans who do not have adequate equity to pay back their loan amount. She has passed a commandment for regulating the unscrupulous activities that are constantly taking place in the States. Her plan prohibits all the individuals and firms that come to the rescue of the troubled people facing the consequences of foreclosure.

Coakley is of the say that these kinds of rescue offers are nothing but tantrums to trap the poor people by making false promises. The rescue companies are fraudulent and take advantage of the innocence of the people in distress by telling them that they won’t have to leave their house. But in the end, the homeowners regret for having trusted these deceitful companies. These people not only lose their home to foreclosure but also the meager amount of money that they have for their survival.

The plan of Coakley to ban the rescue activities in June was temporary. But seeing the grave situation, she has made it permanent. The executive director of the Mortgage Bankers Association of Massachusetts Kevin Cuff is of the say that the orders of Coakley will be applicable in the entire industry and individuals as well as the firms found at default will be severely punished. He said that these rescue schemes are nothing but a major scam that aim to aggravate the problem for the people under extreme duress.

Speaking to the media, Kevin Cuff said that he has seen plenty of ads and banners on the poles and telephone booths in which the rescue foreclosure companies present a very catchy line that promises help to the people suffering from foreclosure crisis. The contact details including the telephone number and email account are also mentioned in their advertisements.

The regulations are the result of the rapidly increasing foreclosure activities that have wreaked havoc on the entire nation. June onwards, almost 13,105 filings have been made for foreclosure in Massachusetts; thereby crossing the record of 19,487 filings reported in the year 2006. In the previous year, not all the cases ended up with the foreclosure activity, but there were many such cases in which the auctions were held but the foreclosure sale did not actually take place. In the last year, three foreclosure rescue scams were reported from the US that involved nearly 46 homeowners. The ban on the foreclosure rescue activities does not apply to the closed ones of the deserted people.

Via

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