Investigation: Mortgage Help Really a 'Rip Off'?

Brian Ross and The ABC News Fixer get on the case and help save a home.
9:33 | 09/04/13

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Transcript for Investigation: Mortgage Help Really a 'Rip Off'?
Tonight on abc's "the lookout," the mortgage rescue. Thilg of lowering your mortgage payments? Look out. Trust the wrong people to help and you could lose your house. Tonight our abc news fixer steps in to try to save one woman's home and we send brian ross to track down the guy she says pushed her to the brink of for closure. How much money did you take? Any sense of shame on your part. Plus what stays in vegas? Probably your money. So we're hitting the strip because it turns out even before you ever hit the tables, you could lose a bundle. Ain't no party like a look out party. Don't worry. We'll show you how to beat the odds. Mattress wars, come on, how much do you really need to pay to get a good night's sleep. 850? 2,000? How about 200 grand? We're taking it to the street to find out where the best value really lies. Before you spend anything, we'll do whatever it takes to help you get more out of your money. Seems like everybody is trying to sell you something these days. Which is why tonight we're on the look out for you. Abc's "the lookout" is about to get busy and how. First up, the mortgage rescue. 8:30 on an august morning in the long island suburbs of new york and our lookout team is on assignment taking out this man. His name is rory, a young lawyer gone bad. According to dozens of people, he cheated them when they sought his help to redo their mortgages and save their homes. A few miles away at his office, I prepared to meet him. You're right here. You've got our lens that goes straight out. It's rolling now? It's rolling now. And ask him the questions he's been ducking since we first contacted him two months earlier. So far all we have are turs e-mails from the lawyer and threatening legal action. Today we will meet face to face with him, seek his explanation of what he did and why. I'm brian ross from abc news "the lookout." I wanted to ask you some questions, please. Reporter: Hard times or good times for this man, according to consumer protection groups. Washington has created programs intended to help homeowners modify their mortgage and keep their homes. This will enable 3 to 4 million homeowners to avoid for closure. Reporter: Authorities say con men around the country have traded on that. How big has this problem been? It's been huge. Recorded losses from these homeowners who filed complaints of $83 million. That's just the tip of the ice berg. Reporter: We first heard about rory when a viewer wrote to the abc news fixer. This is stiffny zimmerman. Reporter: She's an award winning consumer reporting, assigned to help people who think they have been ripped off. She was in danger of losing her home. We arrived in poughkeepsie, new york at this home. We met a woman who was desperate to find a way to save here home. The place where she raised her two boys, making sacrifices so they could grow up away from the rough streets of the bronx in new york city. I worked hard to believe the bronx to make a life up here. It's been wonderful. I don't want to lose it. Reporter: She told us she had faithfully made her mortgage payments and all she wanted was to get her monthly amount lowered. That's when she was contacted by a firm called the rma legal network, standing for rory michael alarcon for a fee. You borrowed the money to pay them? Yes. Two days later they called me and said you've been approved, congratulations. I'm like good, I can keep my home. Incredibly she was told by alarcon's people to stop making payments. They said for them to consider you, you have to be behind on your mortgage. It wasn't long before bank of america sent her a for closure notice and this address in irvi irvine, california turned off their phone. With her sad story and documents in hand, we set out to see what we could do to help. Within an hour, abc news fixer had bank of america executives on the line. She was a good customer. She had never missed a payment. Reporter: They promised to get on the case. Wonderful. Thank you for calling back to quickly. I really appreciate it. What do you think? We have some hope. We'll see. We have a human being. And we have their attention. Reporter: So was the fixer able to save her home? More on that later. We'll keep you posted. All right. Nice meeting you. Reporter: What I'm going to do now is track down this operation that promised ingrid all of these things. We started at the california office where she had sent her money, where the financial planners worked. Nowhere to be found. Next we began to search court records across the country and bingo, we discovered that ingrid is just one of hundreds of homeowners in at least ten states to accuse alarcon of ripping them off. His operation is under investigation in four states. By his own admission, his network took in at least a half million from consumers across the country. He did not provide the services that he promises to provide. We believe that that's part of the loan scam behavior. Linda's group successfully so youed -- sued him on behalf of hundreds of homeowners. Even so, the lawsuit came too late. She told us outside her home she is still likely to be for closed, something she blames on alarcon. There isn't a day that goes by that I don't cry. Reporter: She says one of the appeals was the promise that a legal network and a lawyer would be involved, a credibility that seemed to belie the possibility of a scam. They send the money and nothing happens. Reporter: So we had plenty of questions to ask him about his practice of law and what happened with ingrid and the others. He just left. He's on the move. He's in a black mazda. Looks like he's on his way. Very good. Reporter: He invoked his version of the fifth amendment. What happened with ingrid soriano. I can't talk to you. How much money did you take? Can you tell us that? Are you ashamed of what you've done at all, sir? Any sense of shame on your part? Reporter: He headed inside and upstairs and apparently went right to his computer and law books. Now it's about a half-hour after we first ran into mr. Alarcon and received an e-mail from him that said please be advised that we're requesting a restraining order against you, your company and mr. Brian ross will be filed. Very truly yours. No restraining order was ever filed and we haven't heard a word since. Barbara hawkins had no idea what he looked like until we showed her our tape. That's him? That young guy is him? That's the guy. A little young to have no sole. He's now been put out of business in new york, agreeing to shut down and make restitution of about $50,000. For his part he claims in a lawsuit that the people he hired for his mortgage mot occasion business were to blame, that they lied to consumers. Thanks to the abc news fixer, ingrid is still in her home. Her mortgage was sold by bank of america to another company, but the fixer stayed on the case and cut through the red tape and made sure she did not become a victim twice. Now she has the lower payment she first sought when she was contacted by rory alarcon. Confident she can keep the house. I'm happy, thanks to you guys. You definitely worked really, really hard and helped me a lot.

This transcript has been automatically generated and may not be 100% accurate.

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