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Cuomo cracks down on mortgage rescue firms

Mon, Jul 5th 2010 12:00 am
Attorney General Andrew Cuomo expanded his investigation into mortgage rescue companies that he says abuse homeowners.

Last week, he sent out 182 cease-and-desist letters to firms that bill themselves as mortgage rescue companies.

He said he sent out another 31 letters to mortgage rescue firms to "end all misleading and illegal conduct."

Cuomo said the companies often collect up-front fees illegally from people on the verge of losing their homes to foreclosure. Then the companies fail to help them reduce their mortgage payments.

Cuomo said thousands of New Yorkers have been affected by what he called "mortgage rescue scams."

As of May 2010, 64,778 homes have been foreclosed on in New York.

"The letters that we are sending out to mortgage rescue companies across the United States intend to stop bad companies in their tracks," he said.

"Many of these companies take money from homeowners who cannot afford to pay it and make a bad situation worse."

For more information about Cuomo's letter and to learn how to avoid a scam, go to http://www.nyprotectyourhome.com.