App Aimed at Foreclosure Rescue Scams

ALBANY (AP) -

New York’s attorney general launched a new web-based app on Tuesday to help struggling homeowners determine whether offers of foreclosure rescue are legitimate or scams.

Using up to $100 million from bank settlements following the housing market collapse, Attorney General Eric Schneiderman has established a network of 86 counseling and legal services to help struggling homeowners across the state for free.

With the new app called AGScamHelp, borrowers can check whether a company or individual offering mortgage help is among those vetted by the state or the 145 counseling agencies approved by the federal Department of Housing and Urban Development.

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.