Prevent Loan Scams
Real Stories

Edward B. from Casper, Wyoming

Edward is a construction worker and lives with his wife, his four kids and their grandchildren. When his income started to shrink due to the recession Edward feared losing his home. He had mortgaged the house twice to finance it. The monthly mortgage payment stressed an already strained family budget. Edward contacted his mortgage company and they told him he could modify his loan so that he could actually afford his payment. However, after numerous attempts his lender still had not modified the loan. 

Desperate for help Edward received a flyer in May, 2009, advertising the very help his household was seeking.  The flyer came from a company based in Maryland, and told him their loan modification experts could save him anywhere between $400 and $700 dollars a month. All Edward had to do was pay a $1,500 advance fee that would be refunded if his loan was not modified. Feeling like his luck had finally turned, Edward contacted the company, thinking they must have special expertise and knew how negotiate with the lender on his behalf.

Edward paid the fee in June, money he could have been put towards his mortgage, but if it could save him up to $700 a month on his mortgage, it was a small price to pay. After not hearing anything for a month, Edward called and was told he would be connected to a housing counselor. He never was. The more persistently Edward pursued the company, the less responsive they became until one day he called and the number was disconnected. Edward emailed them and received a reply telling him to fill out more paperwork. This email was the last communication he received from the company. Edward called the number in the e-mail, and reached an automated answering service. Frustrated, he gave up contacting them, realizing he had been scammed.

Today, Edward is months behind on the primary mortgage and is desperately trying to catch up. He has not even bothered to pay his second mortgage. Although his lenders have not sent him a foreclosure notice, Edward thinks he will receive one soon.  He still has a job, but worries he will be out of work in a few months when his company fulfills their last construction contract.