Negotiators reach compromise on foreclosure scam bill

CONCORD, N.H. --House and Senate negotiators agreed to a compromise today to protect New Hampshire homeowners from losing their homes or their home equity to foreclosure rescue scams.

The bill is intended to deal with a growing problem that already has cost some residents their homes.

Nashua Sen. David Gottesman, who proposed the standards, said the measure will protect citizens from foreclosure scam artists.

The bill would impose tough new standards on pre-foreclosure sales and foreclosure consultant services. People would have the right to cancel pre-foreclosure sales agreements and foreclosure consultant services contracts written within a specified time.

The measure also requires comprehensive disclosure of the terms of any deal and requires contracts to be written in understandable language.

Violators would be subject to jail. Homeowners would have a legal right to recover 90 percent of any equity they lost in a pre-foreclosure sale.