State Response

• In response to the fraudulent schemes foreclosure rescue consultants conducted, state legislatures began to enact foreclosure rescue laws to protect vulnerable homeowners.
  
  

Content

• While foreclosure rescue laws vary from state-to-state, in general, they all regulate the foreclosure rescue business. For example, in Florida, a foreclosure rescuer (i.e., a person who is hired to prevent a foreclosure) is required to provide a written notice to the homeowner of his rights under a foreclosure rescue agreement. The rescuer must advise the homeowner that he can cancel the agreement at any time and state how to cancel the agreement.
  
  

Lender

• Most states that have enacted foreclosure rescue laws encourage homeowners facing foreclosure to avoid rescuers and to contact their lenders directly. In Florida, rescuers are required to advise homeowners to consult with the lender first and in Virginia, the Office of Consumer Affairs stresses that the lender is a victim to the foreclosure, and as such, may be willing to work with the homeowner.