Thursday, Oct 16, 2008 at 5:30 PM (Public Entry)

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A “rescue” should not leave homeowners worse off than they would have been without it. The Mortgage Rescue Fraud Act, which went into effect on January 1, 2007, protects homeowners' hard-earned equity with the following key provisions:

Mortgage Rescue Consultants
• Mortgage rescue consultants must give homeowners a written contract listing all
the services that the consultant promises to perform.
• Homeowners have the right to cancel a consultant contract at any time.
• A consultant cannot accept any payment from the homeowner until all of the
services have been performed.

Mortgage Rescuers
• A mortgage rescuer must provide the homeowner with a written contract that
clearly states that the home is being sold.
• Prior to sale, the rescuer must make a determination that the homeowner has the
reasonable ability to make rental payments and buy the home back.
• A homeowner who remains in the home under a rental agreement has the right to
cancel the rental agreement at any time.
• A mortgage rescuer must pay the homeowner at least 82 percent of the home's
fair market value if the rescue ultimately fails.

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