Fraud Protection
This was an article in the Chicago Tribune.
"Foreclosure-fraud shields adopted
--------------------
By Tribune staff
June 2, 2006
Gov. Rod Blagojevich signed legislation Thursday that will provide protections
against fraud for homeowners who are in default or foreclosure.
Foreclosures in Illinois jumped 32 percent in the first quarter, and the state
has seen a huge growth in so-called mortgage rescue services.
There are two types. The first are consultants who promise the owner they can
save the home by negotiating with lenders. The second are property purchasers
who offer to let owners rent the property until they get back on their feet.
The legislation requires that all mortgage rescuers provide disclosures and give
owners the right to cancel contracts. It also requires that the rescuer provide
the owner with at least 82 percent of the value of the home if the owner is
unable to buy it back from the rescuer.
Copyright (c) 2006, Chicago Tribune"
I guess this means that there will be more foreclosures....
"It also requires that the rescuer provide the owner with at least 82 percent of the value of the home if the owner is unable to buy it back from the rescuer. "
How do some of you interpet this? Do you think this will hold true even if you are purchasing the house outright without leasing, renting, or selling back to the owner?