(l-r): Dina Levy, Special Assistant to NYS Attorney General Eric Schneiderman; Mirza Orriols, Acting Regional Administrator; Michelle Santantonio, Executive Director of Long Island Housing Services; Jessica Huaman, LIHS Outreach Coordinator; John Batanchiev, LIHS Attorney; and Olga Alvarez, HUD Public Affairs Specialist

Acting Regional Administrator Mirza Orriols joined with the Long Island Housing Services, Inc. (LIHS) and the New York State Attorney General's Office to warn troubled Long Island homeowners about the continued dangers of mortgage rescue and loan modification scam artists who are after their money or home. The conference took place in early October at LIHS' Bohemia office and featured homeowners who discussed their struggles and experiences in dealing with scam artists.

"Unfortunately, unscrupulous lenders and mortgage brokers continue to prey on unsuspecting and trusting homeowners who are desperate to save their homes," said Mirza Orriols, HUD Deputy Regional Administrator. "That is why I am very pleased that HUD has joined with Long Island Housing Services to warn people about foreclosure rescue scams that can inflict real harm on troubled homeowners."

As a result of the foreclosure crisis, millions of distressed homeowners nationwide have become vulnerable targets to criminal third-party scammers, con artists, and thieves. Their tactics come in various forms including giving the false impression that they are affiliated with government programs, charging illegal up-front fees, and executing fraudulent lease-back financing schemes.

Closer to home, the number of distressed Long Island homeowners is quite sobering. In July, 2012, over 11 percent of home loans on Long Island were 90 or more days delinquent, in foreclosure or in a bank's possession, compared with 9.9 percent in July 2011. In fact, the Long Island mortgage delinquency rate has climbed steadily from 3.6 percent in July 2008 to 9.5 percent in Nassau and 12.7 percent in Suffolk as of July 2012.

"With the critical help of HUD's Fair Housing Initiatives Program (FHIP), we have maintained our vital enforcement efforts and developed greater staff capability to provide services to those vulnerable to discrimination and predatory lending while struggling to maintain their homes," said Michelle Santantonio, Executive Director of LIHS. "This, together with funding secured through the New York State Attorney General's new Homeowner Protection Program (HOPP), will support continued provision of critical counseling and legal services essential for those facing foreclosure. These programs benefit all Long Islanders."

"I commend HUD and Long Island Housing Services for working hard to educate New Yorkers about these fraudulent companies and for bringing to light mortgage settlement scams that have already surfaced," said Attorney General Schneiderman. "As in the past, our office will continue to use all available means to pursue under the law any predators who seek to rip off New Yorkers who are struggling to remain in their homes."

While anyone can fall prey to these scams, studies show that mortgage fraud artists disproportionately target African-Americans, older Americans, and Hispanic borrowers.

LIHS' own statistics reveal that in the first eight (8) months of 2012, twenty-nine (29) Nassau homeowners filed complaints. These homeowners allegedly paid and lost $59,015.67 to foreclosure scam companies. For Suffolk County, LIHS' numbers show that in the first eight (8) months of 2012, fifty-three (53) homeowners filed complaints. The homeowners allegedly paid and lost $442,897 to foreclosure scam companies.

According to the Lawyers Committee for Civil Rights under Law (LCCRL), who receive complaints from agencies like LIHS, 76 Nassau homeowners in 2011 complained of foreclosure scam companies, claiming $304,248 in damages. Since October 2009, 154 Nassau homeowners have made complaints to LCCRL, totaling $498,816.01 in damages from these alleged foreclosure scam companies. From the same records, in 2011, 101 Suffolk homeowners complained of foreclosure scam companies, claiming $304,482.13 in damages. Since November 2009, 230 Suffolk homeowners have filed complaints, alleging $984,759.12 in damages.