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S. 2888, The Foreclosure Rescue Fraud Act of 2008
- This item is from the 110th Congress (2007-2008) and is no longer current. Comments, voting, and wiki editing have been disabled, and the cost/savings estimate has been frozen.
Comparing original version (created by webmaster) with revision saved on July 16, 2008, 20:11:41 (webmaster):
S. 2888 would protect the property and security of homeowners who are subject to foreclosure proceedings.
== Detailed Summary ==
<summary>
(LogForeclosure Rescue Fraud Act of 2008 - Prohibits a foreclosure consultant from: (1) receiving compensation from a homeowner for services performed regarding residential real property until such consultant has fully performed each service contracted for; (2) holding power of attorney from any homeowner, except to inspect documents; (3) receiving consideration from a third party in connection with services rendered to a homeowner by such third party with respect to edit the wikiforeclosure, unless such consideration is fully disclosed in writing before such services are rendered; (4) accepting any wage assignment, lien, or other security to secure compensation for services rendered regarding foreclosure of the residential real property; or (5) acquiring any interest in the residence of a homeowner with whom the consultant has contracted.
Sets forth contract requirements. Permits a homeowner to cancel such contract without penalty or obligation.
Declares void and beunenforceable: (1) any waiver by a homeowner of the firstprotections provided in this Act; and (2) any contract that does not comply with this Act.
Requires a loan servicer to providenotify a detailed summaryhomeowner of the bill!)dangers of fraudulent activities associated with foreclosure if the servicer finds that the homeowner has failed to make two consecutive payments on a residential mortgage loan and such loan is at risk of foreclosure.
Subjects any foreclosure consultant who fails to comply with this Act to liability for actual and punitive damages and attorneys' fees.
Empowers the Federal Trade Commission (FTC) and the states to enforce this Act.
</summary>
<!--Leave in the 'summary' tags if you want the latest summary from the Congressional Research Service automatically to replace the text between the tags once it becomes available. -->
== Status of the Legislation ==
<status>
(Log inLatest Major Action: 4/17/2008: Referred to edit the wikiSenate committee. Status: Read twice and be the firstreferred to update the status of the bill!)Committee on Banking, Housing, and Urban Affairs.
</status>
<!-- Leave in the 'status' tags if you want the latest reported status from THOMAS automatically to replace the text between the tags once it becomes available. -->
== Points in Favor ==
(Log in to edit the wiki and be the first to show why the bill should pass!)
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== Points Against ==
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Visitor Comments
Mr.B
May 10, 2008, 11:16pm (report abuse)The fraudsters must be stopped, but this bill doesn't even come close to doing that. It will just make the bad foreclosure situation worse.
There are fraud laws in every state. If someone commits fraud acting as a “foreclosure consultant” they should be prosecuted for such under their states fraud provisions.
When something as big and messy as this mortgage crisis is going like a runaway train down a mountain, you need to focus on getting the train stopped, not changing the wheels or other maintenance that could make things worse or wreck the train altogether.
Continued…
Mr.B
May 10, 2008, 11:18pm (report abuse)We are in the middle of an avalanche of foreclosures this bill adds a bunch of hoops and confusion to the process of saving a house or short selling a house. They are making lawyers and R.E. Brokers exempt but they frequently are the ones that call us to do this work. We know how to negotiate a loan modification or forbearance, or stop a foreclosure sale in a state that forecloses in 21 days. I bet lawyers would charge thousands of dollars for those services. We do it at no cost to the home owner. Banks are telling the home owners to call us because they know from working with us that we are helping home owners.
If this bill passes I’ll have to stop my business, rewrite all our forms and procedure, have the lawyers look over and approve them, then retrain all the staff in the new procedures. In the meantime thousands of homes will be foreclosed on that we could have helped.
Mr. T
December 14, 2008, 7:25pm (report abuse)This bill would make it very difficult for the honest companies, attorneys, real estate companies, consultants etc. to do their work. You don't solve the problem by restricting the non-fraudulent companies!