Phoenix Media Outlet Conducts Hidden Camera Probe Into Valley Outfit Offering Allegedly Bogus Assistance For Consumers Seeking Home Loan Help

In Scottsdale, Arizona, KPHO-TV Channel 5 reports:

• A 5 Investigates hidden camera investigation has been examining a Valley company that promises to devote billions of dollars to reduce mortgage payments for desperate homeowners. It was the combination of a slick website and desperation that Cheryl Van Berkum said led her to a company called the Guardian Group.

***

• 5 Investigates discovered that the plan was laid out in a power point presentation the company sent to Van Berkum and other desperate homeowners. (Download: Principal Reduction Presentation). The company also e-mailed documents from a recent success story as proof that the program works. [...] However, two months later, Van Berkum said she lost her home to foreclosure, and is out the $1,595 she said she paid Guardian Group.

***

• 5 Investigates sent one of its producers into the company's Scottsdale office with a hidden camera. [...] When a representative of the company spoke to the producer on the video, it was a familiar story. "We negotiate with the lender," the representative said. "We go and buy, just in simple terms, we go and buy the note -- which is your loan." The Guardian Group representative added, "Actually, they settle for 5-cents on the dollar, 10-cents on the dollar." On the video, the representative said Guardian Group could buy the house and sell it back to the 5 Investigates producer below market value.

***

• One former Guardian Group employee told 5 Investigates the company signed up more than 2,000 clients at $1,595 each, and that he didn't know of one success story.

For more, see 5 Investigates Mortgage Fraud Claim (Guardian Group Accused Of Swindling Desperate Homeowners).