Prohibition Against Upfront Fees Fails To Stop Out-Of-State Loan Modification Racket, Leaving North Carolina Woman Out Cash, Home

In Greensboro, North Carolina, WXII-TV Channel 12 reports:

• Susan Pifer, who drives a bus and works at Ellis Middle School, said her family lost $2,000 to a company in Arizona that claimed it would keep her and her family from losing their home. Despite paying the company, Pifer's home was foreclosed on last April. Pifer said the company promised to refund the money if it couldn't negotiate the lower payment. Pifer, who has since moved into a rental property, said the company no longer returns her phone calls.

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• An independent processor who worked on Pifer's loan modification said she knew of at least three other families who lost their money to the same company. According to North Carolina law, it's illegal to charge up-front for these types of services.

For the story, see Family Lost Cash, Home To Mortgage Scam (Mortgage Scam Complaints Soar In NC).