NY AG Tags Two Loan Modification Outfits In Civil Suits For Failing To Provide Promised Services

From the Office of the New York Attorney General:

• Attorney General Andrew M. Cuomo [] filed lawsuits against two loan modification companies for engaging in nationwide foreclosure rescue scams. The lawsuits were filed against National Modification Service (“National Modification”) and its founder Joseph Romano, and Infinity Mitigation Corporation, Infinity Funding Group (“Infinity”), and their owner and principal Neil Singer. The companies and their owners prey on homeowners facing foreclosure by claiming that they can save their homes, but often fail to provide the services promised. National Modification is based in Farmingdale, New York and Infinity is based in Bohemia, New York.(1)

For the New York AG press release, see Attorney General Cuomo Sues Two New York Companies For Defrauding Homeowners In Nationwide Foreclosure Rescue Scam (Cuomo Sues National Modification Service and Infinity Mitigation Services for Illegally Charging Homeowners for Loan Modification Services That Were Not Performed; Cuomo Also Shuts Down Two Other Companies in New York in the Latest Stage of his Ongoing Investigation into Foreclosure Rescue Companies).

(1) The lawsuits against National Modification (go here for lawsuit) and Infinity (go here for lawsuit) allege that the companies charged homeowners up-front fees of several thousand dollars, a violation of New York law. In addition, the companies used misleading advertising and made false representations to customers, including unsubstantiated claims of over a 90% success rate and guarantees that they would be able to convert an adjustable-rate mortgage to a lower, fixed-rate mortgage. The lawsuits also allege that the companies promised a 100% money-back guarantee but then failed to provide refunds to customers that they scammed, often even refusing to answer the customers’ calls.