April 10, 2008
Legislature OK's bill to help homeowners
The Maine House and Senate yesterday approved a bill designed to protect homeowners from a predatory lending practice called equity stripping.
The Foreclosure Purchasers Act, sponsored by Rep. Charles Priest (D-Brunswick), targets people who buy titles to homes in foreclosure, allowing residents to stay in the home and repurchase it over time. At times, these lenders have added fees and provisions that make it impossible for homeowners to buy back the home, according to the Associated Press.
The law requires these lenders to get a state license and only purchase titles from people with a "reasonable ability" to repurchase the home. It also says homeowners can take legal action against these lenders if they've been deceptive in negotiations.
The Foreclosure Purchasers Act, sponsored by Rep. Charles Priest (D-Brunswick), targets people who buy titles to homes in foreclosure, allowing residents to stay in the home and repurchase it over time. At times, these lenders have added fees and provisions that make it impossible for homeowners to buy back the home, according to the Associated Press.
The law requires these lenders to get a state license and only purchase titles from people with a "reasonable ability" to repurchase the home. It also says homeowners can take legal action against these lenders if they've been deceptive in negotiations.
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