Foreclosure rescue scam warnings (Sec. 1452)
The wave of foreclosures following the housing crisis left many homeowners vulnerable to foreclosure "rescue" scams. Instead, scam artists stole from them through a variety of methods, from charging fees for nonexistent counseling services to tricking homeowners into signing over their homes and leaving them stuck with a mortgage mess.
The new law allocates funds to the Neighborhood Reinvestment Corp. to create an awareness campaign for homeowners who are behind on their payments. The campaign will focus on giving distressed homeowners the information they need to avoid falling prey to scam artists. As an alternative, the campaign also will provide contact information for legitimate alternatives such as nonprofit foreclosure counseling.