New Jersey Moves To Minimize "Foreclosure Surplus" Scams

In New Jersey, The Jersey Journal reports:

• [A] common [foreclosure] scam involves urging a homeowner to transfer a property deed for a minimal payment in exchange for a few thousand quick bucks and a promise to transfer the deed back after some conditions are met. The con artist can then let the home go to a foreclosure sale and collect surplus funds, the difference between the sales price and what is owed to the mortgage holder.

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• New state court procedures involving foreclosures went into effect Sept. 1 and should offer additional protection to homeowners. The state Office of Foreclosure will now handle applications for surplus funds itself, according to Tammy Kendig, a spokeswoman for the state courts. "That's going to give us a better assurance that the person applying for funds is actually the person they say they are," she said.

For the story, see Beware of scams offering to 'help'.