Jan 5, 2009 10:49 pm US/Central
Mortgage Help Scam Now Costing Couple Their Home
ST. PAUL (WCCO) ―
When Minnesota families sit down to balance their budget, many are finding money to pay for their home just isn't there. That's why foreclosure consulting companies across the country are reaching out to help homeowners. But that help is sometimes costing folks their homes.
In St. Paul, the Hansen's have transformed their old home with their own hands in the 10 years they've lived here. The home was once a rental property and where there was a kitchen there is now a living room.
A few years ago, they refinanced to finish their kitchen and consolidate some debt with one of those adjustable rate loans but things didn't get better.
"The day we closed on our loan, my husband was laid off and laid off for a pretty lengthy amount of time," Gretchen Hansen said.
Chris Hansen is a union painter and work has been hard to come by in this economy. Soon, they weren't able to pay their soaring mortgage and a Florida company stepped in.
The Hansen's paid almost $2,000 to National Foreclosure Counseling Services three months ago. They haven't heard anything from them for weeks. Now, their home will go up for auction first thing Tuesday morning.
"We're losing our home, so they didn't help us, they didn't do their job," Gretchen said.
Minnesota's Attorney General Lori Swanson has sued 10 companies in the last year for the very same thing. It's illegal in Minnesota for foreclosure consultants to charge anything until after they do something.
"These are people really trying to do everything right. They know they've got a problem. They're trying to hire somebody reputable to help them, only that company ends up deceiving them once again," Swanson said.
It's likely too late for the Hansen's to save their home. They wanted to share their story so nobody else falls for false hope.
"We definitely have been learning from our mistakes and it's just heartbreaking because we love our home," Gretchen said.
Swanson said there are companies who offer foreclosure help for free. For more information on those companies, and ones to stay away from, click on the links below.
List Of Agencies Offering Free Help
List of Mortgage Consulting Companies AG Sued
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