Spotlight

23 October 09	SBLS Foreclosure Prevention Project Attorney Speaks to City Council About Adopting Legislation to Fight Property Scams South Brooklyn Legal Services attorney Cyrus Dugger gave testimony at City Hall on Oct. 6 regarding Int. No. 1070, a piece of legislation which would amend the regulations regarding for-profit companies that specialize in “loan modification” and “foreclosure prevention” – more generally known as “distressed property consultants.” Dugger made several suggestions about how to best help poor homeowners across the city by forcing these companies to fully disclose the nature of their work to customers, instead of using misleading and deceptive advertisements to obtain illegal large, up-front payments. Dugger said, “In reality, the most effective way to prevent homeowners from being taken advantage of by distressed property consultants would be to prohibit them from operating. SBLS has yet to see a distressed property consultant that substantially assisted a homeowner prevent a foreclosure or cure a default.” He continued, “The concepts in the proposed amendment could prevent some homeowners from being induced into these fraudulent schemes.” To read the full text of Dugger’s testimony, please click the link below. Distressed.Property.Consultants.CDTestimony.Oct.6.pdf (312.32KB) (Foreclosure Prevention) \| More SBLS Spotlights >

23 October 09

SBLS Foreclosure Prevention Project Attorney Speaks to City Council About Adopting Legislation to Fight Property Scams

South Brooklyn Legal Services attorney Cyrus Dugger gave testimony at City Hall on Oct. 6 regarding Int. No. 1070, a piece of legislation which would amend the regulations regarding for-profit companies that specialize in “loan modification” and “foreclosure prevention” – more generally known as “distressed property consultants.”

Dugger made several suggestions about how to best help poor homeowners across the city by forcing these companies to fully disclose the nature of their work to customers, instead of using misleading and deceptive advertisements to obtain illegal large, up-front payments.

Dugger said, “In reality, the most effective way to prevent homeowners from being taken advantage of by distressed property consultants would be to prohibit them from operating. SBLS has yet to see a distressed property consultant that substantially assisted a homeowner prevent a foreclosure or cure a default.”

He continued, “The concepts in the proposed amendment could prevent some homeowners from being induced into these fraudulent schemes.”

To read the full text of Dugger’s testimony, please click the link below.

download Distressed.Property.Consultants.CDTestimony.Oct.6.pdf (312.32KB)

(Foreclosure Prevention) | More SBLS Spotlights >