Grant to Protect Rocklanders from Foreclosure Scams

The launch of the Foreclosure Rescue Scam Prevention Initiative, a new grant program that will enhance services for homeowners at risk of fraudulent foreclosure rescue schemes, includes $25,000 for the Rockland Housing Action Coalition.

The Office of the Attorney General is committing $350,000 in new grants to housing organizations across the Hudson Valley, New York City and Long Island, where foreclosure rescue scams such as deed theft have been most prevalent.

The AG's office has also created a web-based app and a set of tips to help you avoid scams and get legitimate help.

The grants will connect New Yorkers most vulnerable to foreclosure scams with the vital Homeowner Protection Program underway across the state.

“New York has led the nation in developing innovative ways to address the fallout from the foreclosure crisis -- including the Homeowner Protection Program, so folks wouldn’t lose their homes because they didn’t have access to an attorney,” said Attorney General Eric Schneiderman announcing the grants. “Now, with foreclosure rescue scams on the rise, we are enhancing HOPP’s capacity to empower our most vulnerable homeowners to avoid becoming victims of these scams.”

Foreclosure rescue scams generally promise to save people's homes by negotiating lower mortgage payments or principal reductions with the homeowners’ mortgage servicers or lenders. After collecting upfront fees, these scam operations fail to provide the services promised, placing their victims at even greater risk of foreclosure. In some instances, scammers actually convince the homeowners to sign over the title to their home.

To protect yourself from becoming a victim of a foreclosure rescue scam, the Attorney General offered the following tips:

• Be skeptical of online ads or telephone callers that promise they can get you a mortgage modification or save your home from foreclosure. Only your bank or loan servicer can approve a loan modification.

• Visit AGScamHelp.com to determine if a company is legitimate.

• Do not give your personal financial information, such as your bank account number, social security number or the name of your loan servicer, to a caller offering to help save you from foreclosure. Your bank will already have this information.

• Never pay an up-front fee for mortgage-related services. It is a violation of New York law to charge upfront fees for such services, and violations should be reported to the Attorney General’s hotline at 1-855-HOME-456.

• If you believe you have been scammed by a foreclosure rescue operator or a debt relief organization, submit a complaint to the New York State Attorney General’s Office.

As with the foreclosure crisis itself, New Yorkers have been hit hard by the foreclosure rescue scam epidemic.

According to a 2014 report by the Center for New York City Neighborhoods and the Lawyers’ Committee for Civil Rights Under Law, from March 2010 to September 2014 New York homeowners submitted over 2,700 foreclosure rescue scam complaints, which documented at least $8.25 million in losses. On average, each New York victim of a foreclosure rescue scam reported a loss of $4,183. However, these scams often result in a domino effort that raises that dollar figure: Homeowners can end up losing tens or even hundreds of thousands of dollars more because their homes fall into foreclosure as a direct result of the scam.

Using reported cases of foreclosure rescue scams collected by community organizations in New York, Civis Analytics built a predictive model identifying residents most at risk for these types of scams. The model incorporates demographic, socioeconomic, and geographic variables, as well as information on homeownership, property value, and length of residence. While such scams are a problem statewide, the initiative is making initial grants in those areas of the state where the problem is most widespread.

Foreclosure Rescue Scam Prevention Initiative Grantees, Hudson Valley Region

• Westchester Residential Opportunities, Inc. - $50,000
• Housing Action Council, Inc. – $25,000
• Rockland Housing Action Coalition – $25,000

The funding for HOPP and the Foreclosure Rescue Scam Prevention Initiative comes from bank settlements that Schneiderman secured through the federal-state mortgage-backed securities working group, which President Barack Obama appointed Schneiderman to co-chair in 2012. To date, the Attorney General has secured more than $95 billion in bank settlements nationally, with $5.5 billion coming to New York State alone. That settlement money has been allocated toward a range of initiatives across the state to help communities recover from the housing crisis.

The Office of the Attorney General has also partnered with publishers and broadcasters to tamp down on illegal advertising of foreclosure rescue scams; pursued civil litigation against foreclosure rescue scammers, putting them out of business, securing settlements, and in some instances obtaining restitution for victims; and created a Real Estate Enforcement Unit within the OAG’s Criminal Division to handle complaints including foreclosure rescue scams. Several investigations are currently underway.