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Legislation Targets Dirty Foreclosure Practices

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By Carl  Orth | The Suncoast News

Published: January 14, 2009

NEW PORT RICHEY - The home foreclosure crisis will inspire still more legislation this year to protect people from fraud.

State Sen. Mike Fasano, R-New Port Richey, learned about a trick played on renters, Fasano's chief legislative assistant, Greg Giordano, explained.

An unscrupulous owner of a home in the middle of foreclosure would go ahead and rent the house to unsuspecting tenants, Giordano elaborated.

The owner would neglect to tell the renters they might be booted out of the house once the bank concludes the foreclosure proceedings. The renters then have a rude awakening when authorities arrive at their doorstep and tell them they must vacate the premises.

Fasano wrote Senate Bill 454 to provide a penalty up to $10,000 for property owners who dupe tenants in this manner. Victims could recoup "reasonable" attorney fees.

In addition, the proposed law would require an extra form to be added to the rental agreement.

The property owner would have to sign the sheet, either verifying the house is not involved in foreclosure or at least disclosing any legal proceedings to potential renters.

The bill will go to Senate committees for consideration when the Legislature begins its 2009 regular session, March 3.

Last year, Fasano authored legislation that was passed into law which protects against another type of foreclosure fraud.

Already struggling to make mortgage payments, desperate residents in financial trouble had been prey for crooks claiming they would help rescue people from foreclosures.

The 2008 law against foreclosure fraud gives residents 10 days to rescind a contract with a foreclosure "rescue" firm. No longer can firms ask for cash advances from clients or credit card numbers.

They cannot be paid until services are provided.

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