Prevent Loan Scams
Real Stories

Steven P. from Lowell, Massachusetts

Steven P. is a full-time police officer and has an adjustable rate mortgage that will re-set at a higher rate in August, 2011. While he did not fall behind on his mortgage payments, Steven grew concerned that his mortgage would reset at a rate he could not afford.  He tried negotiating with his lender, but the lender determined he made too much money to get a modification.

Steven's friend, a real estate agent, referred him to a company that was successful in obtaining favorable loan modifications for other homeowners facing foreclosure. Based on this trusted recommendation, he called the company and was told he was "pre-approved for a loan modification." A team of experienced attorneys could lower his interest rate and he would not have to worry about his mortgage adjusting to a higher rate.

In March, 2009, Steven paid a $2,995 advance fee without signing a contract. After paying the fee, he made numerous phone calls and emails to get any update on the progress of his loan modification, but to no avail. The only update Steven received was that the modification process took anywhere between 60 and 120 days. Ten months later, he was finally told, via email, that the consultants had exhausted every option, but could not get the lender to modify his loan.

Frustrated and outraged, Steven contacted his lender and learned that agents from the company did contact them, but merely asked if he was eligible for a loan modification. Steven could have done this work by himself. Thanks to this for-profit company, a hard working police officer is out almost $3,000 that he sorely needs, received nothing in return and is dreading the day when his mortgage adjusts to a rate he cannot afford.