Lawsuits filed against two N.Y. loan modification companies‏

By Nick Rees | Mar 26, 2010

Andrew Cuomo (D)

NEW YORK (Legal Newsline) - Lawsuits have been filed by New York Attorney General Andrew Cuomo against two loan modification companies for engaging in nationwide foreclosure rescue scams.

The lawsuits name National Modification Service, based in Farmingdale, N.Y., and its founder Joseph Romano, and Infinity Mitigation Corporation, Infinity Fund Group, based in Bohemia, N.Y., and owner and principal Neil Singer.

The lawsuits allege that the companies and their owners prey on homeowners who face foreclosure by claiming that their homes could be saved. The companies alleged failed to provide the promised services in many instances.

"As New Yorkers and others across the country fight to stay afloat in these tough times, we continue to see dishonest companies preying on vulnerable homeowners," Cuomo said. "These companies pretend to be reaching out a helping hand, but instead they push consumers further down into debt and, in some cases, into foreclosure."

Cuomo's lawsuits alleged that both companies charged up-front fees of several thousand dollars to homeowners in violation of New York law. The companies are also alleged to have used misleading advertising and false representations to customers, including unsubstantiated claims of a more than 90 percent success rate and guarantees that they would be able to convert an adjustable-rate mortgage to a lower, fixed-rate mortgage.

The companies are also alleged to have promised a 100 percent money-back guarantee but failed to provide customers that were scammed with refunds, often refusing to even answer customers' calls.

Cuomo's lawsuits seeks to shut down both companies and provide customers with restitution and damages. The suits also aim to prevent both companies and their owners from providing foreclosure rescue services in the future.

Penalties and costs sought from the companies and their principals sought by the lawsuit could, collectively, total more than $1 million.

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