According to the Star-Ledger, New Jersey Assemblyman Gary Schaer introduced a bill over four years ago to protect homeowners from predatory lenders and shady real estate professionals. Now, several years later, Schaer might finally be successful in passing the Foreclosure Rescue Fraud Prevention Act.
Legislative History and Purpose of the FRFPA
New Jersey Newsroom reports that scam artists began posing as professional foreclosure consultants several years ago, and would con people out of their last few dollars. These dishonest companies and individuals would sell the hope of postponing or preventing disclosure, only to disappear after collecting their "fee."
Schaer realized that the foreclosure consultant industry was not subject to regulation. As a result he created the FRFPA to require all foreclosure consultants to register with the state. Additionally, the law would require written proof of a consultant's client agreement, and they would not be able to collect payment until after the promised services were performed.
The FRFPA was unanimously passed in the Assembly in June, 2011 and recently arrived at Governor Christie's desk for final approval. The governor, however, did not sign the bill in its current form. He believed the FRFPA was too broad and might inadvertently restrain lawful real estate transactions.
Supporters of the bill believe that the governor will approve the bill after minor changes are made - good news for many New Jersey residents.
Chapter 13 Bankruptcy Might Prevent Foreclosure
One of the most important persons someone facing foreclosure can speak with is an experienced bankruptcy attorney. While mortgage consultants might make countless promises, a bankruptcy attorney might actually be able to save your home.
People with qualifying income might be eligible to file for Chapter 13 bankruptcy. In a Chapter 13 bankruptcy, people do not have to liquidate their property to repay their creditors. Rather, Chapter 13 debtors set up a three to five year repayment plan and get to keep all of their property, including the family home, so long as the terms of the plan are fulfilled.
Anyone facing foreclosure or considering bankruptcy should speak with a qualified lawyer immediately for an honest analysis whether bankruptcy is appropriate for their situation.
