New Law Protects Hawaii Homeowners From Foreclosure Rescue Scams

In Honolulu, Hawaii, Pacific Business News reports:

• The Hawaii Bankers Association is reminding consumers that the Hawaii Mortgage Rescue Fraud Prevention Act, signed into law by Gov. Linda Lingle in June, protects them from people who prey on homeowners facing property foreclosures and liens. “Mortgage rescuers,” or distressed-property consultants, charge high fees, often do minimal work and employ deceptive tactics that sometimes force homeowners to deed their properties to the mortgage rescuer, according to the association. The new law requires consultants to provide homeowners with a written contract detailing their services. It also gives homeowners the right to cancel at any time before services are performed.

For more, see Hawaii homeowners are protected from fraudulent mortgage rescuers.

For the perspective of a Hawaii real estate agent, who believes the new law is written in a way that may impede real estate salespeople in the legitimate conduct of arranging short sales for homeowners pursuant to standard listing agreements, see Hawaii Reporter: Mortgage Rescue Fraud Prevention -The Unintended Consequences of Hawaii's New Act 137.