City warns of foreclosure scams

As the American dream is "crumbling before our eyes," Los Angeles Mayor Antonio Villaraigosa on Monday warned residents about a dramatic increase in families falling prey to scams based on foreclosure rescues and loan modifications. Troy Anderson in the Daily News.

The mayor - joined at a news conference on the steps of City Hall by officials from banks, nonprofits and legal-aid groups - outlined free resources that residents can use to prevent foreclosures and renegotiate home loans.

"It may sound like an obscure issue dealt with by banks and lenders, but all across the state and city, families are falling prey to scam artists and financial predators," Villaraigosa said.