Two Local Companies Busted for Mortgage Fraud

A nationwide investigation is bringing down companies accused of preying on homeowners in desperate situations -- offering home loan modifications to avoid foreclosure, all for a fee -- but those homeowners didn't get anything in return.

"Hope for Homeowners Now" in Glendale is one of two companies in Arizona caught in the sting.

Federal and state officials are calling it a loan modification scheme.

John and Susan Anderson paid about $3,000 to have their loan modified. The company claimed to reduce interest rates in a few months -- now, they've been shut down.

Hope for Homeowners Now is on the list of more than 115 alleged modification scammers named by officials in Las Vegas.

"Since we have so many foreclosures, that means homeowners in Arizona are in the target for these scams," says Attorney General Terry Goddard.

Back in April, the head of Hope for Homeowners Now, Michael Winding, justified the $3,000 price tag.

"What we do is we save you some time. The unknown is how long it takes the customer to sit at home on the phone," says Winding.

"There's no evidence that they've actually done any work," says Goddard.

At this point, there is very little regulation in this business. That's why government agencies are doing what they can to crack down.

Hope for Homeowners Now and Taken Care of Investments have both been shut down. A judge ordered the two companies to pay a combined $1.3 million in restitution.

Arizona Foreclosure Prevention Workbook
www.azag.gov

Arizona Foreclosure Prevention Helpline
1.877.448.1211