Many people, desperate to save their homes, are being victimized by foreclosure rescue companies. Many of these companies promise to negotiate with mortgage banks for lower rates, get payment forgiveness and other benefits in exchange for illegal upfront fees —promises they won’t or can’t actually fulfill. As a result, consumers may find themselves further in debt and closer to foreclosure than before!
The New York State Office of the Attorney General is investigating more than 20 such loan modification companies and has taken some companies to court to stop them. Click here to learn more about Foreclosure Rescue Scams.
The Attorney General warns people to beware of any person or agency who offers to:
- Stop or delay foreclosure for an upfront fee.
- Pay your mortgage or save your home if you transfer the deed to your home.
- For- profit companies with names that suggest some government affiliation
If you are facing foreclosure, the resources below will help you identify and avoid scams:
- The Federal Trade Commission produced a video called: How to Avoid Foreclosure Rescue Scams.
- Home Equity Theft and Foreclosure scams
- Foreclosure rescue tips
- If you live in NYC, call 311 to schedule a free foreclosure counseling at the Center for New York City Neighborhoods. If you are the victim of foreclosure fraud, you can call the NY State Attorney General’s Consumer Helpline, 1-800-771-7755or visit www.ag.ny.gov.
The LawHelpNY website www.LawHelpNY.org and the Spanish site www.AyudalegalNY.org, contains a library of resources to help with foreclosure problems. Select Housing or Consumer from the homepage and go to the Foreclosure subtopic.