Herb Kohl: “I am introducing the Foreclosure Rescue Fraud Act of 2009 with my colleagues Senators Collins and Lincoln. This…”

“I am introducing the Foreclosure Rescue Fraud Act of 2009 with my colleagues Senators Collins and Lincoln. This legislation, which we introduced last Congress, will make it more difficult for financial predators to take advantage of homeowners in foreclosure. Foreclosure rescue scams are another consequence of the housing crisis that is plaguing the country. Foreclosure filings have been climbing across the country for the past two years and in Wisconsin, filings have risen 22 percent over the past year. Additionally, the Federal Reserve estimates that 2.5 million Americans will be facing foreclosure in 2009. As default rates and foreclosure filings have steadily increased, so have financial scams which prey on homeowners. The Better Business Bureau listed foreclosure rescue scams as one of the top ten financial scams in 2008. For most people, their home is their greatest asset. When a homeowner falls behind in their payments, it can cause a great deal of emotional stress on the family. Scam artists prey on owner's desperation and give them a false sense of security, claiming they can help 'save their home.' The types of scams vary, but the end result is that the homeowner is left in a more desperate situation than before. The Foreclosure Rescue Fraud Act aims to prevent these cruel abuses by increasing disclosure and creating strict requirements for a person or entity offering foreclosure-rescue services.”