Foreclosure Scams Prompt Legislation Around Country

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Last month an article appeared about the unfortunate problem of rising foreclosures leading to all sorts of scams that cheat struggling homeowners out of money. Here is an excerpt:

Soaring foreclosure rates are sending states scrambling.

Their goal: to protect homeowners from a new crop of scam artists who claim they will “rescue” borrowers. At the same time, some states are forming funds that could provide affordable fixed-rate mortgages to those on the precipice of losing their homes.

The stakes are high: As many as 130,000 homeowners – the most in 30 years – are going into foreclosure each month. Experts worry that entire neighborhoods will decline – similar to what happened in the 1960s and ’70s – as abandoned foreclosed homes cause property values to drop. Some elected officials are calling for federal legislation to prevent predatory lending and asking lenders to voluntarily hold off on raising mortgage rates for those most in trouble.

You can read the rest of the article at this link – http://www.csmonitor.com/2007/0405/p01s03-usec.htm

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