[Scammer and fraudsters want to separate you from your money – but ABC News can help stop them. Each day of National Consumer Protection Week, The ABC News Fixer will highlight a new scam, con or bamboozle and teach you how to keep from becoming a victim. And if you have a consumer problem that needs fixing, tell us about it HERE.]
Many homeowners were hit hard in the recession, as they fought to stay in their homes amid job losses and declining incomes.
And sadly, those struggling homeowners have become easy marks for “mortgage rescue” con artists.
American homeowners have lost millions to mortgage modification scams in recent years. In a typical scam, the homeowner is promised they’ll get a new loan with better terms if they first pay a large, upfront fee and then continue to send payments to the modification company.
The problem is the scam artists just pocket the money, while the consumer falls further behind and into foreclosure.
Here are three red flags of a mortgage rescue scam:
Most people groan at the thought of spending hours on the phone with a customer service call center, but Stephanie Zimmermann relishes the chance to slice through red tape.
Before joining ABC News, Stephanie untangled consumer problems at the Chicago Sun-Times, where her popular column recovered more than $1.4 million in refunds, credits, and merchandise for consumers in the Windy City.
Stephanie, who lives in Chicago, has also worked at the South Florida Sun-Sentinel, and has bachelor's and master's degrees from the Medill School of Journalism at Northwestern University. But most of all, Stephanie is a consumer who hates to see anyone else get ripped off.