State Rep. Ford sponsors foreclosure relief bill
FROM STAFF REPORTS Gulf Breeze News news@gulfbreezenews.com

Legislation ensuring homeowners are properly informed about their rights when they sign contracts with foreclosurerescue consultants won unanimous approval from the House Committee on Financial Institutions today. House Bill 643, the Foreclosure Rescue Fraud Prevention Act, sponsored by Representative Clay Ford (R-Gulf Breeze), is in response to the surge of mortgage fraud cases in Florida.

"It feels good to be one step closer to providing this much needed protection to our citizens," said Representative Ford. "This legislation protects homeowners from those who prey on them in their time of distress. We must make every effort to protect Floridians from this blatant form of deception."

A foreclosure-rescue consultant helps homeowners to stop, avoid or delay foreclosure proceedings. HB 643 changes the way foreclosure-rescue consultants do business by requiring a five-day period in which consumers can cancel a foreclosure rescue contract. It also requires that all contracts include notice of the cancellation period, the recommendation that homeowners contact their lender or mortgage service prior to the signing the agreement and that the consultant is prohibited from collecting payment until all services are completed.

In 2007 alone there have been over 150,000 mortgage foreclosures in Florida. Florida ranks second in the nation behind California in number of foreclosures. With the number of foreclosures on the rise in recent years, criminals and scam artists have found a new market of consumers to defraud. By making false promises to homeowners to save them from foreclosures, these businesses are actually working on stealing their homes or most of the equity they have accumulated in their homes.

HB 643 will now be referred to the Jobs and Entrepreneurship Council.