A bill introduced to the Nebraska State Legislature this past Monday would restrict the advice foreclosure consultants can give and provide homeowners an opportunity to back out of deals that could cause them to lose their home equity.
Under the bill (LB123), owners who signed over their homes would have the right to rescind such agreements. Also, consultants would be barred from asking homeowners for title to their property, and would not be allowed to accept any payments in advance of work performed.
Eight states have recently passed similar laws designed to protect consumers from questionable practices in the foreclosure consultancy business, including Colorado and Missouri. Crafted by the state banking department, the Nebraska bill is modeled after a Colorado law that took effect last year.
Read the full proposed bill here