Stories from Scammed Homeowners

Real Stories

Sixto Diaz

Sixto Diaz migrated from Mexico to America in search of a better opportunity. He met and married his wife in California and they had three children. They wanted to give their children a home with a yard so they could run around and play. In 2005, they purchased a two bedroom, two bathroom home in Northridge, CA for $335,000. Finally, their dream of becoming homeowners had come true. In 2008, the dream became a nightmare when the mortgage payment increased, making it unaffordable. Around the same time, Sixto’s overtime hours were cut which caused even more of a hardship for the family. After working with Bank of America for over a year, Sixto was successful in receiving a loan modification that made his payments affordable. Everything was going well for the family. Their mortgage was current, but the mortgage loan was upside down by over $100,000. Since the family purchased their home at the peak of the real estate market, when home values were inflated, the home’s value dropped drastically after the mortgage crisis. Sixto loved his home but realized it was the investment that had gone wrong. In 2013, he reached out to West Coast Holdings to seek help. He went to ‘a professional’ to see if they could resolve his mortgage problem. He wanted to submit another loan modification so his payments wouldn’t continue to increase every year and also to change the terms to include paying principal in the monthly payment and not just the interest. West Coast Holdings assured Sixto he would receive a loan modification if he paid them $3,000 and an additional $8,000 to get a principal reduction. Sixto couldn’t believe the amount. But believed them because they were the professionals. Sixto paid the $3,000 fee, and was instructed to stop making mortgage payments. He went into default with his servicer for two months in hopes that West Coast Holdings would be working on resolving his issue. One year passed and West Coast Holding didn’t do anything for the Diaz family. They were scammed out of $3,000! They didn’t receive anything. Determined to go forward in 2014, Sixto called the HOPE hotline for guidance. They recommended that he call NHS of Los Angeles County for foreclosure prevention counseling. He enrolled in NHS’ foreclosure prevention clinic at the end of January and they opened a case to resolve his issue. They submitted a loan modification application along with a request for a principal, all at no cost because these services are free at NHS. Sixto was a little nervous at the clinic because he thought he was going to be scammed again, but after speaking to a counselor he felt at ease.

Sixto Diaz

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