Brooklyn, NY – Councilman Simcha Felder (D – Brooklyn) urges New York’s anxious homeowners to be on the lookout for home foreclosure rescue scams. Scammers posing as mortgage and foreclosure “consultants” are offering to pay mortgages and rent homes back to the owner without contacting the lender. Often the homeowner is asked to sign over the deed to their property to the scammer. Payments intended for lenders are quickly pocketed, causing the lender to begin the foreclosure process. Unsuspecting homeowners become vulnerable to lost equity, eviction, rent increases, and the sale of their home.

 “These scammers will stop at nothing to make a buck,” says Felder. “Even if that means ruining peoples lives.”

New York State law prohibits individuals from charging up-front fees for these types of services. Red flags include a promise to save the home and a request that the mortgage payment be sent to the rescue company, not the lender. Homeowners are encouraged to be wary of allowing others to make mortgage payments on their behalf. Those having trouble with mortgage payments should contact the lender directly. More often than not the lender would prefer to work out a payment plan than begin the foreclosure process. Homeowners facing foreclosure may contact a certified housing counselor at New York State Banking Department’s Consumer Helpline at 1-877-BANK_NYS. Additional assistance is available through the Homeownership Preservation Foundation at (888) 995-HOPE.

(YWN Desk – NYC)