State app aimed against foreclosure rescue scams

Posted at 9:54 AM, Dec 02, 2014

New York's attorney general is launching a new web-based app to help struggling homeowners determine whether offers of foreclosure rescue are legitimate or scams.

Using bank settlements from the housing market collapse and foreclosure misdeeds, Attorney General Eric Schneiderman has established a network of 85 counseling and legal services to help struggling homeowners for free.

With the app called AGScamHelp, homeowners can check the state or federal credential of the company or individual offering mortgage help.

Scams typically promise lower monthly payments or reductions in principal in return for an upfront fee, but fail to deliver and leave victims deeper in a financial hole.

From March 2010 to September 2014, New York homeowners have filed 2,700 foreclosure rescue scam complaints, documenting at least $8.25 million in losses.