Pending NYS Law Targets Loan Modification Scams, Deed Ripoffs; Bill Awaits Governor's Sign-Off

In the Throgs Neck section of The Bronx, the New York Daily News reports:

• The bottom-feeders are back, but a bill on Gov. Paterson's desk could protect distressed Bronx homeowners from fraud. Two years after the subprime mortgage crisis imploded, unscrupulous loan modification consultants are still scamming homeowners like Angeleta Beckford.

• The 54-year-old coughed up more than $17,000 for consultants who promised to save her Throgs Neck home from foreclosure - not knowing she could have gotten free help from the state, said Senator Jeff Klein (D-Bronx, Westchester), the bill's sponsor.

• One firm took $400 per month from Beckford. Another persuaded her to sign over the deed and title to her home, she charged. "They scammed me," said Beckford. "I spent so much money. ... It's a nightmare."

• Many scammers have been charged with fraud in federal court. But other cold-blooded consultants continue to prey on Bronx homeowners, Klein said, by flooding their mailboxes with flyers that make false promises.

• The bill requires consultants to put a disclaimer on loan modification ads telling homeowners they can receive similar services for free through the New York State Banking Department.

For the story, see Home fraud shield law on Gov. Paterson's desk would fight loan scams.