NEW YORK (Legal Newsline) - New York Attorney General Andrew Cuomo announced on Wednesday that he has issued cease-and-desist warnings to more than 180 mortgage rescue companies.
Cuomo alleges that numerous companies have routinely collected illegal up-front fees from homeowners close to foreclosure and then failed to follow up with help as promised. Cuomo believes thousands of New Yorkers have fallen victim to these scams.
"Today, we are putting mortgage rescue companies on notice-they must immediately cease any dishonest tactics used to prey on homeowners or they will face the consequences," Cuomo said.
"The business model for many mortgage rescue companies is based on false promises, but the true cost of their deception is all too real. When faced with the threat of foreclosure, New Yorkers should remember the rights they have as homeowners and the protections that my office ensures."
Cuomo claims many mortgage companies claim they can modify home mortgage loans and lower monthly payments, engaging in deceptive and illegal marketing practices in the process.
Cuomo's cease-and-desist letters warn mortgage rescue companies to end any illegal, deceptive and misleading practices, including charging up-front fees for consulting, failing to enter into written contracts and not allowing homeowners to cancel their contract according to the rules and laws of the state.