Amanda Faenrich thought her problems were solved.
"I was relieved and I was like finally I'm going to be able to save my house and I'm not going to have to worry about this anymore."
A divorce had left her struggling to keep up with mortgage payments on her Lyman home.
She looked online for agencies that would help modify her loan and found a company claiming to be with the government program Making Homes Affordable.
They told her to send all mortgage payments to them so they could work with the lender and get monthly reductions. Look at this letter of congratulations. It claims the modification went through.
$5000 later, she was served with foreclosure papers. It's then she found out, that company had never sent her lender a dime.
"I was crushed. I cried all day because I was like what am I going to do and how am I going to deal with this and you know so, it was very very hard," she said.
We showed the documents to Sidney Oglesby, a government certified foreclosure counselor with Piedmont Community Action.
He points out, there are legitimate companies that charge homeowners to help modify their loans.
But the truth, he says, non-profits like the one he works for will help you for free.
In the case of this company, he says the government program logo on the letterhead is alarming.
"You have a for profit agency and in this case this is a total scam company. They got a for profit agency on a non-profit document. So that should throw up some red flags."
He adds legitimate agencies won't tell you to stop sending payments to your lender, either.
Oglesby says 90% of these bogus companies actually contact you after sifting through public records online to show who's behind on their mortgage.
Faehnrich filed a police report and was granted an extension by a judge last week on the foreclosure. She doesn't know whether she can save her home, but wants to save you from losing yours.
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