Victims of Foreclosure Related Fraud Might Get Compensation

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Victims of Foreclosure Related Fraud Might Get Compensation

By: Clark Raitz

The Attorney General of Indiana, Greg Zoeller, is trying to set up a program that will help people who have fallen victims to fraudulent activities involving foreclosure procedures to get their legal expenses back. Zoeller is planning to set up a program that will be financed by individuals or companies that have been adjudged to have violated the state’s law.

The program is set to be approved in this year by the state legislature and is expected to improve the condition of the Indianapolis Real Estate industry and the whole housing market of Indiana. According to sources, the AG Office is planning to offer as much as $3,000 to homeowners and consumers who have fallen prey to fraudulent financial practitioners in the state.

The primary target of the program are homeowners who have lost their properties to foreclosure due to deceptive practices by mortgage servicers, credit agencies and lenders. According to officials, such deceptive actions have become quite common during the housing market crisis and the subsequent recession.

According to the AG, residents of the state who have suffered in the hands of these perpetrators are mostly willing to help the AG go after the guilty parties, but in majority of cases, they are unable to get compensation since most of the firms and individuals involved in the questionable activities have already filed for bankruptcy.

Under the proposed program, homeowners will be able to get compensation, but tax payers will not be asked to shoulder the responsibility of paying for these compensations. The program will get its financing from fees and penalties that will be collected from companies and individuals who are found guilty of violating Indianapolis Real Estate laws and statewide regulations pertaining to telemarketing, financial credit and residential property lending.

Zoeller has revealed that the program is patterned after the restitution effort that he supported in the 2010 legislative session, wherein over $125,000 worth of compensation were paid to the people who were victimized by American Escrow, a firm found to be in violation of state laws for failing to pay property taxes that were collected from property owners. The program is expected to, somewhat, ease the burdens felt by homeowners who have been directly or indirectly affected by the foreclosure crisis.

Author Resource:->  Original Post: http://ping.fm/zW6Sz on ForeclosureDataBank.com, your source of real estate foreclosures.

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