October 8, 2026
A Staten Island courtroom this week put a spotlight on one of the most damaging scams a struggling homeowner can face. According to ABC7 Eyewitness News, the president of a Staten Island company called JT Homesavers was arraigned on 46 charges, including grand larceny, over allegations that homeowners facing foreclosure paid for help that never arrived. These are allegations, and the defendant is entitled to her day in court.
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According to ABC7 Eyewitness News, the president of JT Homesavers, a Staten Island company, was arraigned this week on 46 charges, including grand larceny. Prosecutors allege that homeowners facing foreclosure came to the company for help, were told to stop paying their mortgages while a refinance was supposedly arranged, paid the company money, and then had that money kept rather than used to help them. Several Staten Island homeowners attended the court proceeding, and some say they lost their homes. None of this has been proven in court, and the defendant is presumed innocent unless a court finds otherwise.
The pattern is usually the same. Someone contacts a homeowner who is behind on payments, often after spotting the foreclosure filing in public court records, and promises to save the home, stop the auction or win a loan modification. The company then asks for an upfront fee, tells the owner to stop paying the lender and send payments to the company instead, and collects personal and financial documents. In the worst versions, the owner is pressured to sign paperwork that transfers the deed. Meanwhile, the real foreclosure keeps moving forward, the missed payments pile up, and the homeowner loses months they could have used to get legitimate help.
In most cases, no. New York law generally bars distressed property consultants from collecting a fee before they have fully performed the services they promised, and the federal Mortgage Assistance Relief Services rule also prohibits most companies from charging advance fees for loan modification or foreclosure relief. There are limited carve-outs, most notably for licensed attorneys providing legal services under specific conditions, so not every payment is automatically illegal. For a homeowner, the practical rule is simple: a company that asks for money before it has delivered anything is a major red flag.
No. Stopping payments on a company's instruction usually makes the default deeper, adds late fees and can speed up the foreclosure timeline. A legitimate housing counselor or attorney may help you negotiate with your servicer, but the decision about payments should be made with your own advisor and your lender, not a third party collecting fees. Never sign documents you do not fully understand, and never sign over your deed without reviewing it with your own attorney, meaning one you choose and pay for directly, not one the company provides.
Legitimate help is free. New York's Homeowner Protection Program, known as HOPP and run through the Attorney General's office, connects homeowners with nonprofit housing counselors and legal services at no cost. Homeowners can call 1-855-466-3456 or visit homeownerhelpny.org. HUD approved housing counseling agencies are another free option. Anyone who believes they were targeted can report it to the Attorney General's office, and it is never too late to report. This is general consumer information, not legal advice, so anyone facing foreclosure should speak with HOPP, a HUD approved counselor or their own attorney about their specific situation.
Staten Island and Brooklyn both have large numbers of long-held, owner-occupied 1 to 3 family homes, many with significant equity, which makes them attractive targets for rescue scams and deed theft. Be cautious of unsolicited calls, mailers or door knocks after a missed payment, promises that a loss is guaranteed to be stopped, requests for upfront fees and any instruction to pay someone other than your servicer. If a family member, especially an older relative, is behind on a mortgage, check in with them and point them to HOPP. Owners who cannot keep the home also have options worth reviewing with a counselor, including a loan modification, a repayment plan or, in some cases, selling before the auction to protect the remaining equity.
Questions about how this affects your home in Staten Island or Brooklyn? Work with Joseph Ranola, or text or call (917) 905-2541. New episodes of Daily Tesla News break down the NYC real estate stories that move the market.
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