Thursday, June 24, 2010

NY AG Fires Off 180+ Cease & Desist Warnings To Loan Modification Outfits Peddling Services To Empire State Residents

From the Office of the New York Attorney General:
  • Attorney General Andrew M. Cuomo [] announced that his office is sending over 180 cease-and-desist letters to mortgage rescue companies with customers in New York, warning them to immediately end all misleading and illegal conduct.

  • The Attorney General’s ongoing investigation into the mortgage rescue industry revealed that many companies routinely collect illegal up-front fees from homeowners on the brink of foreclosure and then fail to help them lower their mortgage payments or save their home as promised. Thousands of New Yorkers have been affected by mortgage rescue scams.

  • Mortgage rescue companies target homeowners facing foreclosure by claiming to be able to modify home mortgage loans and lower monthly payments. Often, these companies engage in deceptive and illegal marketing practices to lure customers and then fall short on their promises. After using a mortgage rescue company, homeowners can find themselves in worsened financial circumstances and at greater risk of losing their homes.

For the entire NY AG press release, see Attorney General Cuomo Orders Mortgage Rescue Companies To Cease Fraudulent Practices Against Homeowners (Cuomo Sends Cease-and-Desist Letters to Over 180 Mortgage Rescue Companies).

Go here for the New York AG's website on avoiding foreclosure rescue rackets.

Go here for a copy of the cease & desist letter.