New York Attorney General Eric Schneiderman has released an app that can protect thousands of families facing foreclosure from being exploited by foreclosure rescue scams, according to the Associated Press. The app, called AGScamHelp, will alert users to possible fraudsters and will direct them to legitimate services. With $100 million from bank settlements following the financial crisis, Schneiderman has established a network to connect those about to lose their homes with 86 providers of legal and financial services, free of charge.
“There are lots of people eligible to have modifications made on their mortgages. They face some challenges getting to the right programs and protecting them from phony programs.”
The scams offer to rescue those in danger of foreclosure, but often at very high fees that put already distressed people in greater financial peril. Between 2010 and 2014, there were 2, 700 complaints about phony foreclosure rescue scams robbed people of $8.25 million. When Schneiderman took office, 845, 000 families were threatened with foreclosure. Since then, his program has counseled 35, 000, of whom 11, 000 were able to secure modifications on their mortgages.