New Jersey Homeowners Facing Foreclosures Will Get More Protection from Rescue Scams
Legal Services E-lert
Bibliographic Info:
Author: Sarah Portlock
Source: “N.J. Legislature bill would regulate foreclosure rescue fraud, offer relief to distressed homeowners”
Date: July 3, 2011
The Star Ledger writes: “They call themselves "foreclosure rescue" companies, but in many cases they end up enriching themselves while destroying whatever credit-worthiness a distressed homeowner has. A bill to regulate the industry overwhelmingly passed both the state Senate and Assembly last week and housing and foreclosure experts said it will at least bring some relief to the already daunting task of helping people stay in their homes. ‘It’s some of the most egregious kind of predatory lending, the foreclosure rescues,’ said Peggy Jurow, who leads the Foreclosure Defense Initiative at Legal Services of New Jersey. She said it can take years to help victims sort through the complicated mass of subsequent lawsuits and paperwork, even if the consultant has been jailed. . . . Last year, Attorney General Paula Dow obtained $17 million in legal settlements through rescue fraud prosecutions, including Hope Now Financial Services and Hope Now Modifications of Cherry Hill, New Hope Modification of Bellmawr, and New Day Financial Solutions of Somerset County, said spokesman Lee Moore. The office continues to investigate similar consumer complaints. The U.S. Attorney’s Office in New Jersey has also prosecuted several foreclosure rescue fraud cases, and in May U.S. Attorney Paul Fishman announced the guilty plea of Ronald Harris, of Piscataway, who admitted to his role in a scheme that defrauded mortgage lenders of over $10 million, $1.15 million of which Harris personally received. . . . Gov. Chris Christie has not taken a public position on the bill and has 45 days from June 29, when it passed, to review its contents before taking action, said spokesman Kevin Roberts.”