Illinois Mortgage Rescue Fraud Act (Anti "Home Equity Theft" Law) Becomes Effective Today

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Illinois Senate Bill 2349 is one of a number of new Illinois laws that goes into effect today, according to this Press Release from the office of Illinois Governor Rod R. Blagojevich. According to the governor's Press Release:

"Senate Bill 2349 protects vulnerable homeowners from unscrupulous mortgage ‘rescue’ firms that purport to help avoid foreclosure, but instead profit at the homeowners’ expense by taking over the property and not alleviating the debt. The law gives homeowners new rights when dealing with companies that offer financial assistance to help them save their homes from foreclosure. It also guarantees that homeowners will receive a substantial portion of their equity in the home from the companies. Additionally, the new law creates new disclosure requirements for mortgage rescue companies. "

The full text of SB 2349, officially called the Mortgage Rescue Fraud Act, is available here.

(revised 1-9-07)