As more Texas homeowners face foreclosure many are falling victim to a variety of foreclosure scams. These foreclosure scams offer big promises and deliver very little while siphoning off homeowners' limited resources. To strengthen laws designed to protect homeowners from foreclosure scams, Attorney General Greg Abbott and Senator Craig Estes are proposing a new law called the "Foreclosure Rescue Fraud Prevention Act." This law would require that "foreclosure prevention consultants" provide customers with a written contract detailing the services they will provide to prevent foreclosure.
The law would also require a written disclosure statement advising customers to contact an attorney or housing counselor before signing mortgage rescue agreements. If the law is violated by "foreclosure prevention consultants," prosecutors could obtain civil penalties under the state's deceptive trade practices act.
This legislation is badly needed in the Dallas-Fort Worth area as many homeowners facing foreclosure find themselves vulnerable to the empty promises of "foreclosure rescue companies." Many homeowners facing foreclosure expend lots of money trying to save their homes using these scams. This type of legislation which hold "foreclosure rescue companies" accountable is long overdue.