ATLANTA- Today state Representative Billy Mitchell (D- Stone Mountain) expressed his hopes that next year the General Assembly will pass House Bill 508, the Stop Mortgage Foreclosure Rescue Fraud Act. This bill would regulate firms who claim to be “Foreclosure Rescuers.”
“This bill will end one of the most offensive of fraud schemes currently victimizing struggling Georgians,” said Rep. Mitchell. “Our current economy has unfortunately led some to prey on and victimize consumers who are seeking help to get out of foreclosure. Currently there is absolutely no regulation of foreclosure rescuer firms in Georgia.”
Under this scheme, individuals claiming to be Foreclosure Rescuers entice consumers whose homes fall into foreclosure into paying upfront fees in exchange for assistance in either negotiating new mortgage terms or securing funding assistance. However, often times once the consumer pays the upfront fee they never hear from the Foreclosure Rescuer again.
HB 508 seeks to prevent these schemes by creating requirements and regulations for Foreclosure Rescuers. It also institutes specific penalties for any Foreclosure Rescuer who violates theses requirements.
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Representative Billy Mitchell represents the citizens of District 88, which includes portions of DeKalb and Gwinnett counties. He was elected into the House of Representatives in 2002, and currently serves on the Health & Human Services, MARTOC, Regulated Industries, and State Planning & Community Affairs Committees.