Cuomo: I'll Sue Foreclosure-Relief Scam Artists
Earlier today Cuomo said he will sue AmeriMod -- a Long-Island based company that is one of the biggest nationwide firms promising to help desperate homeowners save their homes (Perhaps not coincidentally, many firms that promise to get New York City residents out of credit card debt are also based in Long Island).
Cuomo says the company charged high upfront fees without providing any services -- in violation of New York law -- and falsely claimed in ads that it was fully licensed and has a success rate of 90-100 percent.
The A.G. has issued subpoenas to fourteen other "loan modification" companies. They companies promise that they will negotiate with the consumers' banks to lower mortgage interest rates, lock in fixed rates, get late fees and past due payments forgiven, and even reduce principal balances. They rarely deliver on these claims.