State cracks down on foreclosure rescue scammers

Attorney General Eric Schneiderman says the scams are common in New York City, especially in minority communities.

Attorney General Eric Schneiderman says the scams are common in New York City, especially in minority communities. (12/14/16)

NEW YORK - New York's attorney general is cracking down on scams that target people facing foreclosure and eventually seize their homes.

City residents like Joseph and Jacqueline Clarke have fallen prey to the scam.

They say they owned their Canarsie home for 16 years before Joseph got sick and they missed some mortgage payments.

"We were dealing with a company in Queens who said they can help us with our situation," the couple says. 

But rather than helping, the company sold the Clarkes' home to a developer and tried to evict them. 

They had been misled to think that they were signing foreclosure rescue paperwork, but in actuality, had signed over the deed to their home.

Attorney General Eric Schneiderman says the scams are common in New York City, especially in minority communities.

"Foreclosure rescue scammers are swooping in and promising relief," Schneiderman says. "What the home rescue scammers actually deliver is heartbreak."

The attorney general is adding $20 million to a homeowner protection program that provides outreach and legal advice to help residents avoid such scams. He also warns residents not to give out personal financial information like bank account or Social Security numbers.

advertisement | advertise on News 12

Trending Video

A 3-year-old girl died after a car accident 1 3-year-old killed in crash on Bruckner Boulevard
Tristin and Tyler Rodriguez, 13, have more than 2 Ambitious twins from the Bronx gather online following
Demonstrators sit on the ground along Pennsylvania Ave. 3 Marchers use Trump's 100th day to protest climate policies
Three of the five children of slain first 4 Children of slain first responder announce Jets draft pick
April 28 is Superhero Day. News 12 hit 5 Word on the Street: Superhero Day

advertisement | advertise on News 12

Features

Sorry to interrupt...

Your first 5 are free

Access to News12 is free for Optimum, Comcast®, Time Warner® and Service Electric℠ video customers.

Please enjoy 5 complimentary views to articles, photos, and videos during the next 30 days.

LOGIN SUBSCRIBE