Maryland has passed a law called the Homeowners in Foreclosure Protection Act.
The law governs transactions know as foreclosure reconveyances. A foreclosure reconveyance is where a homeowner, to avoid a foreclosure, sells the house to an investor who then leases the home back to the homeowner and typically provides an option to purchase the home again. At closing, the homeowner receives very little, if no money for their home.
Typically the homeowner can not afford the rent, nor will the homeowner be able to act on the option to purchase. In the end, the home is lost and the homeowner receives nothing for it.
If you have been approached by someone promising to save your home from foreclosure, call an attorney first.
Labels: foreclosure, fraud, homeowner, litigation, protection, scam
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Office of Kenneth E. Crocken