Article: ATTORNEY GENERAL MADIGAN: NEW LAW PROTECTS VULNERABLE HOMEOWNERS FROM MORTGAGE 'RESCUE' FRAUD SCHEMES

The Illinois Attorney General issued the following news release:

Attorney General Lisa Madigan today advised vulnerable homeowners of their rights under a new law designed to protect them from predatory mortgage "rescue" businesses.

Effective January 1, 2007, the Mortgage Rescue Fraud Act, P.A. 94-0822, sponsored by Sen. Jacqueline Collins and Rep. Marlow Colvin, takes aim at unscrupulous businesses that offer to save homeowners from foreclosure but often strip the equity from the homes and leave the homeowners with nothing. Under the new law, mortgage rescuers are required either to save the home as they have promised or pay the homeowner a substantial portion of the home's value.

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