North Carolina Couple Loses Home To Foreclosure After Loan Modification Firm Allegedly Beat Them Out Of $1,300

In Raleigh, North Carolina, WRAL-TV Channel 5 reports on a local couple who found themselves stuck with an "exploding" adjustable rate mortgage on their home that doubled their house payment within six months of obtaining the loan, and who needed help:

• That was beyond what they could handle, so the Mizers looked for refinancing. They tried 40 lenders, but all of them turned down the family down. Then they got a letter from mortgage restructuring firm Augustus, Rae & Reed that claimed to have a "95.5 percent resolution success" rate in stopping foreclosures. “I remember us hugging (and saying) ‘Baby, we're going to get to keep the house,’ (and) telling the kids we're going to be able to keep the house," Mizer said.

• The company charged more than $1,300 upfront and told the Mizers not to communicate with their lender. Company representatives said they would handle everything, according to Mizer, who said that was the last time she heard from the company. One month later, the family's bank started foreclosure proceedings and told them it had never been contacted by Augustus, Rae & Reed. The Mizers lost their house.

For the story, see Facing foreclosure? Watch out for scammers.