In the Dreams Foreclosed - Equity Stripping & Rescue Scams blog post today we quoted the National Consumer Law Center (NCLC) report:
"Yet for all of its benefits, maintaining a home over the long term presents special challenges, especially for families with low or unstable incomes, little savings, minimal experience with mainstream financial institutions, or a home in need of extensive repairs. Foreclosure prevention strategies are vital to sustaining homeownership for low-income families."
In a National Realty News blog post Scam Targeting Unwary Homeowners Busted we learn that Governor Rod R. Blagojevich announced that state regulators shut down a “mortgage rescue” scam that defrauded vulnerable Chicago metropolitan area residents of their homes. The alleged scheme preyed on homeowners at risk of foreclosure and conned them into signing over the title and any earned equity from their properties, allowing investors to purchase the homes at a fraction of their market value.
“Illinois consumers have the right to know that when they do business with companies licensed by our state, they will receive the best possible service by ethical and appropriately trained professionals,” said Dean Martinez, Secretary, Financial and Professional Regulation. “We will use all the tools available to us to discipline companies which violate the laws and regulations designed to protect Illinois homebuyers and help homeowners retain their properties.”
IDFPR recommends that homeowners in financial difficulty should first talk to their mortgage lender to explain the situation and to see if the loan can be restructured or refinanced. If the lender is not responsive, an owner should consider selling the house or engaging the services of a reputable real estate firm.
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