Wisconsin State Lawmakers Propose Foreclosure Rescue Statute

In Milwaukee, Wisconsin, the Milwaukee Journal Sentinel reports:

• "Instead of a lifeline, they're tying a noose around homeowners," Rep. Jon Richards (D-Milwaukee) said. "We mean to stop them." Richards commented at a Milwaukee news conference, as he and Sen. Jim Sullivan (D-Wauwatosa) introduced the "Homeowner Protection Act," a legislative proposal that would make it a crime to obtain title to a property by deceit or lies. At issue are agreements commonly called foreclosure reconveyance contracts. Such contracts transfer the title from the homeowner to the "rescuer," generally along with a way for the debtor to recover the house. But often, the terms of the deal are insurmountable for the homeowner, such as high monthly payments or supposed violations of the condition of the property.

For more, see Bill seeks to halt foreclosure scams (Plan targets home 'rescuer' deals).

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.).