Accounting Requirement For NY Foreclosure Rescue Operators

Under New York State's Home Equity Theft Prevention Act:

• Within 120 days of either the eviction or voluntary relinquishment of possession of the residence by the Equity Seller, the Equity Purchaser must provide the homeowner (Equity Seller) with cash payments or consideration of at least 82% of the fair market value of the property. The Equity Purchaser also must make a detailed accounting of the basis for the payment amount, or a lack thereof, to the homeowner on a Homeowner Payment Accounting Form and include written documentation of expenses.

Go here for the Homeowner Payment Accounting Form required to be filed under New York law.

Go here for the Instructions for Homeowner Payment Accounting Form.

Go here for Information on the HETPA (both for consumers and the real estate industry).

The statute, the accounting form, the form instructions and the general information are all made available online courtesy of the New York State Banking Department.

For more on equity stripping scams, generally, see DREAMS FORECLOSED: The Rampant Theft of Americans' Homes Through Equity-stripping Foreclosure 'Rescue' Scams (4.61 MB approx.).