Cuomo suing foreclosure rescue company

New York Attorney General Andrew Cuomo is suing foreclosure rescue company American Modification Agency, claiming that the company engaged in deceptive business practices and used false advertisements claiming to help homeowners with underwater loans. Cuomo’s office says the Long Island-based company has wrongly charged thousands in illegal fees to unknowing customers wishing to modify their mortgage to avoid foreclosure. In addition, the company allegedly failed to obtain loan modifications for the majority of customers and did not include required disclosures and notices in its customer contracts. The lawsuit comes on the heels of multiple reports of corrupt “foreclosure rescue” companies claiming to provide mortgage modifications to desperate homeowners seeking to escape foreclosure. [Crain’s]

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