Legal Remedies
Several states have passed laws to prevent and/or regulate equity stripping schemes. Minnesota passed a comprehensive law aimed at "foreclosure re-conveyance" practices in 2004, and Maryland in 2005 was the first of at least 14 other states to adopt the Minnesota model for regulating these transactions. These state laws require adequate disclosures, capped fees, and an ability to pay on behalf of the consumer. The statutes also ban certain deceptive and unfair practices associated with equity stripping.
Other laws regulating the activity of "foreclosure consultants" have been passed in California, Georgia, and Missouri.
Additionally, state fraud and unfair and deceptive trade practices laws may be applicable. The Truth in Lending Act may also govern some transactions.
Read more about this topic: Equity Stripping
Famous quotes containing the words legal and/or remedies:
“I am opposed to writing about the private lives of living authors and psychoanalyzing them while they are alive. Criticism is getting all mixed up with a combination of the Junior F.B.I.- men, discards from Freud and Jung and a sort of Columnist peep- hole and missing laundry list school.... Every young English professor sees gold in them dirty sheets now. Imagine what they can do with the soiled sheets of four legal beds by the same writer and you can see why their tongues are slavering.”
—Ernest Hemingway (1899–1961)
“We can endure neither our vices nor the remedies for them.”
—Titus Livius (Livy)