Foreclosure Nightmare: Homeowners Conned by Mortgage Assistance Scam

Posted by: Desiree B. | Mar 08,2008

In the news this week, more homeowners at risk for foreclosure were taken in by a mortgage assistance scam. A Connecticut couple sent $1245 to a company that promised to prevent foreclosure. The couple, Mike and Tracy Banks, sent in the money after receiving a card in the mail from the company. The couple alleges that a company representative told them over the phone that they would provide mortgage assistance in the form of a payment plan after receiving their first payment. Unfortunately, the Banks soon found out that they had been the victims of a mortgage assistance scam.

 

How it went down: After the Banks sent the mortgage assistance company the check for $1245, they kept close tabs on their mortgage balance to make sure it wasn’t a scam. Nothing changed. After a couple of weeks, the Banks contacted the mortgage assistance company and were told that the hefty check they sent them only covered a service fee! A service fee, the homeowners maintain, that they were never told existed; they thought the money would go to prevent their home from going into foreclosure. After getting the Connecticut Attorney General involved, the couple received notice that they will receive a refund. And the mortgage assistance scammers also stated that they negotiated a payment plan with the lender on behalf of the homeowners to prevent foreclosure. I doubt that they’re holding their breath.

 

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