Florida Foreclosure Rescue Rules Go Into Effect Tomorrow

Florida Attorney General Bill McCollum's office recently issued a reminder that a few recently passed Florida laws go into effect on October 1, 2008, including:

• Foreclosure Fraud Protection Act (HB 643): This law protects and educates consumers of their rights when they are signing a contract with a foreclosure rescue entity and includes additional protections for homeowners who face foreclosure. Key provisions of the bill include the creation of a three-day right-of-cancellation period and the requirement that foreclosure rescuers include – in large, bold font – notification to homeowners of this right of cancellation on the contract. The contract must also include a recommendation that the homeowner contact his or her lender or mortgage servicer prior to signing the agreement, and it must inform the homeowner that the consultant is prohibited from accepting any form of payment until all services are completed. Furthermore, the law provides enhanced remedies for consumers under Chapter 501, Florida Statutes.

For the Florida AG's press release, see Attorney General Announces New Laws Taking Effect October 1.