Industry News

Proposed law would protect against real estate foreclosure scams

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In a growing effort to stem mortgage fraud, Chicago state lawmakers this month introduced a bill aimed at so-called "mortgage rescuers"--con artists who promise to bail out cash-strapped families but often end up taking their homes instead, the Chicago Tribune reported. Other states are taking similar action. A bill aiming to protect consumers from scammers who prey on homeowners facing foreclosure is making its way through the Colorado legislature. Two other states, Minnesota and Maryland, have recently enacted laws protecting consumers from such scams. Maryland's law went into effect last May, while Minnesota's was enacted a year and a half ago. New York and other states also have legislation pending, according to Elizabeth Renuart, staff attorney at the National Consumer Law Center. California has had such a law for a number of years. Drafted by the state's Attorney General, Lisa Madigan, and introduced by State Sen. Jacqueline Collins, D-Chicago, the legislation was prompted by ...