Maine Lawmakers Consider Foreclosure Rescue Legislation

In Augusta, Maine, the Kennebec Journal Morning Sentinel reports on the state legislature's current consideration of proposed rules regulating foreclosure rescue operators. An excerpt:

• It's called equity stripping, and Rep. Charles Priest, D-Brunswick, wants to put regulations in place to better protect consumers. His bill would require foreclosure purchase companies to be licensed by the state. It also calls for a written contract, and requires the company to verify that the consumer can repay the debt. Homeowners who enter a contract would be required to get financial counseling, and those who do lose their homes would be entitled to at least 82 percent of the fair market value of the home. Priest said while there are reputable companies that do this kind of work, he wants to protect Mainers from those that take advantage of people. [...] Rather than ban the practice, Priest said he wants to regulate the companies.

For more, see Lawmakers targeting predatory 'equity stripping'.