Stories from Scammed Homeowners

Real Stories

Alejandra Vargas

Pasadena, California

Alejandra Vargas came home to find an eviction notice on her front door. "I felt devastated," she says, "I didn’t know where to turn for help." She started with the address on the notice that threatened to take her home away.

I felt devastated. I didn’t know where to turn for help.

Alejandra took the day off from her part-time job—a financial burden in itself—and went in search of answers. But instead of finding a company or a representative, she found a mailbox. She asked the people in a nearby real estate office if they knew anything about the mystery address. "They told me they didn’t know about it, but that many others like me had come looking, too," she says. When they inquired about her situation, Alejandra was quick to explain. "I would have done anything to solve my problem."

Not surprisingly, the real estate firm told Alejandra exactly what she wanted to hear: They could help her, just as they had helped many other homeowners facing foreclosure. It was just a matter of time—and a $1,000 fee.

Alejandra now realizes she was deceived by a subtle but costly loan-modification scam. The real estate company lured her to its office to make money off her misfortune. In the end, Alejandra was able to save her home, but she knows most scam victims are not able to save their homes. As a result, she is eager to let others know that the same type of help she paid $1,000 for is available at no or low cost from HUD-approved counseling agencies. "These scammers are out there, and many homeowners are falling into their trap," Alejandra says. "I only wish I knew the facts sooner."

Common Scams