Melina Schuler
It's a mortgage mess! While many homeowners are buzzing about possible new deals on their mortgages, it turns out--many are getting scammed out of big bucks on those loan modifications! How do you make sure you're not the next victim? Hank Phillippi Ryan has the 'Real Deal.'
Law enforcement was his life for 17 years. Stan chased crooks and tracked down bad guys. But when an injury put Stan on the sidelines and his income diminished, his family's once affordable mortgage became impossible to pay.
Stan Fitzhugh, homeowner
It's very tough.
Then listening to the radio, Stan heard a company promising to slash mortgage payments. He called and was told they had people working inside his mortgage company and they said they might reduce his mortgage by 35 percent. He just had to send $1200 to get things started, and he did.
Stan Fitzhugh, homeowner
He really made me feel that this was something that would turn our lives around.
But good guy Stan was getting hit by the bad guys. They took his money and ran.
Stan Fitzhugh, homeowner
I just hope this doesn't happen to anyone else.
But here's the real deal: we found cash strapped homeowners across the country are being slammed by scammers all making false promises to help modify their mortgages.
Massachusetts Attorney General Martha Coakley
We are concerned that people will fall prey to this.
It all began when President Obama announced his plan to get lenders to reduce mortgage rates. But when homeowners wondered how the plan worked, that opened the door to fraud. In fact, Massachusetts Attorney General Martha Coakley has filed complaints against three private companies in just the past few months, each fraudulently offering to help get new loans.
Massachusetts Attorney General Martha Coakley
To give a service that you really can't deliver on you, that you are bilking the public, you are acting in a way that's unfair and deceptive, and that's a violation of the Massachusetts laws.
Now here's the twist: The federal government itself is actually offering advice, the Making Home Affordable program. Agents in this Washington DC office will give you info and talk to your lender and it's all free. But we found there are also scammers pretending to be that program! And that's not free. One of them called Rob in Worcester.
Rob Paixao, homeowner
He wanted information about my income.
Rob was told he'd been approved for a mortgage makeover just send $1,500 bucks. Sensing a scam he hung up.
Rob Paixao, homeowner
It's really terrible, it's really awful that happens.
The scams are so prevalent AG Coakley issued a warning for those seeking mortgage help, reminding homeowners it's illegal to demand or accept a fee in advance.
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