NY Attorney General Cracks Down On Loan Modification Scams
On March 26th, Andrew Cuomo, New York Attorney General and son of former NY Governor, Mario Cuomo, filed major lawsuits against National Modification Service, Infinity Fund Group and both of their founders/owners. Both loan companies are alleged to have participated in foreclosure rescue scams, nationwide.
Owners, Neil Singer (Infinity Fund Group) and Joseph Romano (National Modification Service) made empty promises to homeowners facing foreclosure. Many homeowners were told their homes could be saved, yet, none of the services offered were ever provided. And more often than not, homeowners were charged thousands of dollars in fees, up-front (a violation of NY law), in hopes their adjustable rate mortgages would be converted to lower fixed rate mortgages.
Customers were also guaranteed their money back, in full, if not satisfied, yet in reality, were flat out ignored when they tried to contact the companies (as mentioned in the lawsuit). And while both companies claimed to have 90+% success rates, they in fact, drove homeowners farther into debt and in some cases, foreclosure.
These lawsuits come on the heels of the HUD’s introduction of http://www.preventloanscams.org, an informative site which points out the warning signs and sneaky tricks perpetrated by loan modification cons.
Unfortunately, as always the case throughout history, with economic hardships and recession come the scammers and swindlers. “As New Yorkers and others across the country fight to stay afloat in these tough times,” Cuomo said, “we continue to see dishonest companies preying on vulnerable homeowners.”
Andrew Cuomo’s $1 million plus lawsuits are looking to shut down these companies, return the customers’ money and prevent Singer and Romano from ever offering loan modification or any other foreclosure rescue services, again.Post Tags: