NJ Lawmakers Overwhelmingly Pass Bill Targeting Sale Leaseback Equity Stripping Peddlers, Other F'closure Rescue Operators; Awaits Governor's Sign-Off

The Star-Ledger reports:

• They call themselves "foreclosure rescue" companies, but in many cases they end up enriching themselves while destroying whatever credit-worthiness a distressed homeowner has.



• A bill to regulate the industry overwhelmingly passed both the state Senate and Assembly last week and housing and foreclosure experts said it will at least bring some relief to the already daunting task of helping people stay in their homes.



• "It’s some of the most egregious kind of predatory lending, the foreclosure rescues," said Peggy Jurow, who leads the Foreclosure Defense Initiative at Legal Services of New Jersey.(1) She said it can take years to help victims sort through the complicated mass of subsequent lawsuits and paperwork, even if the consultant has been jailed.

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• Gov. Chris Christie has not taken a public position on the bill and has 45 days from June 29, when it passed, to review its contents before taking action, said spokesman Kevin Roberts.

For more, see N.J. Legislature bill would regulate foreclosure rescue fraud, offer relief to distressed homeowners.

(1) Legal Services of New Jersey coordinates the statewide Legal Services system, which provides free legal assistance to low-income New Jerseyans for their civil legal problems.