Loan modification scam victims receive refunds
Las Vegas, NV (KTNV) -- A dozen valley residents received some big checks today. It was restitution for homeowners ripped off in a loan modification scam.
It was an emotional day for 12 valley residents. Many are getting back money they lost more than 3 years ago.
"I am pleased to distribute more than $43,000 in restitution to victims here with us today," says Catherine Cortez Masto.
According to the Nevada Attorney General, the homeowners turned to Las Vegas company "Save Your House" for help getting a loan modification.
"What they would do was set up shop and advertise that they help homeowners and guarantee that they would save their home from foreclosure," says Catherine Cortez Masto.
The indictment says the company took up front fees, which is illegal, between August of 2008 and July of 2009. Jesus Baca, Ramon Dy-Ragos and Luis Baca were all prosecuted for conspiring to knowingly and falsely promote the business as a foreclosure defense firm. Cynthia Stockton paid them nearly $4,000.
"We were so upside down on our house, the loan was so predatory, that we had to do something," says Cynthia.
She says before doing business with the company, she actually did some research and found "Save Your House" was licensed. But she quickly learned they weren't going to deliver any results despite their promises.
"They played every dirty trick in the book I swear they did. It's just been nightmarish," says Cynthia.
Fortunately Cynthia says she was able to eventually find help somewhere else and managed to get a loan modification. But she says getting past the experience with "Save Your House" hasn't been easy.
"It's devastating. It is just devastating," says Cynthia.
The Attorney General warns any homeowner looking to re-modify that no company can guarantee a loan modification.
Also, never pay any advance fees. The Federal Trade Commission recently passed a ruling stating it's illegal to ask for any money up front. Plus, make sure to carefully read and understand any contract before signing on the dotted line.
And if you think you've been the victim of a loan modification scam, we've got your back Las Vegas. Let us know and we'll do what we can to help. Just email us at firstname.lastname@example.org.