Evicted Homeowner Claims Loan Modification Firm Collected Loan Payments, Let Mortgage Go Into Default, Bought House At Foreclosure Sale

In Ogden, Utah, KTVX-TV Channel 4 reports:

• [Ron Chavez] was evicted from his home after twenty two years. Last year he fell behind on his mortgage. [...] He turned to a loan modification specialist. [...] "I talked to an attorney who was supposed to help us out and I got offered a brochure to contact these people,” Chavez said. Chavez entered into an agreement with the company. He was told to continue paying the mortgage, but the company put the money into an escrow account. He said the company let the house go into foreclosure and then bought it below market value. For a small fee, the company [would resell] it to Chavez at a reduced price. And Chavez was supposed to get a lower mortgage payment, but he never got a chance to buy it back. He was evicted.

For the story, see Homeowners facing foreclosure duped.