Mortgage fraud is a growing problem according to the Department of Consumer Affairs. Scammers are targeting homeowners behind on their payments. They claim to modify your loan. But they charge you up front, and have nothing to show for it.
Margaret Alexander is battling cancer and has been unable to pay her mortgage while on disability. She thought an offer for a loan modification would keep a roof over her head.
"Here is this company saying we can help you with your modification get your payment knocked down, get my payment lowered and I'm like, wow, that's what I need," said Alexander.
She paid nearly $700 dollars upfront, but the loan modification company has only made her money problems worse.
"These scam companies know that all they have to do is fax in one paper and they say, 'Well we tried, yeah, we got authorization and that's it.' They have no intentions of actually trying to get the consumer modification whatsoever."
Scott McHam with the Urban League of the Upstate has jumped in to help Margaret and numerous other clients for free. He says Mortgage Fraud is a growing problem in the Upstate.
What's worse is Alexander is now being harassed with letters claiming the company will garnish her wages if she doesn't pay more. McHam says that's illegal.
The Urban League says you should also beware of any company that tries to get you to turn over the title to your house. They may charge you a cheaper rent in exchange, but the only business that can do that legally, is your own mortgage company.
"I really don't want to lose it, but right now, that's exactly where I'm headed," said Alexander.
She's grateful to have the help of the Urban League of the Upstate, and hopes by speaking out she can save others from becoming victims of Fraud.
The Urban League has joined forces with other agencies like the Department of Consumer Affairs and HUD to create what they call a "Scam Network."
That network lists all the companies who have committed fraud on the website: http://www.preventloanscams.org/
If you've been a victim you can also call the mortgage fraud hotline at 800-553-7723.
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