Foreclosure Rescue Fraud
CBS News
Transcript
this is my great-grandfather this house is full of memories for Alexandria Craig it was her parents home and when they died she inherited it what is it going to be like for you I don't know I don't know she now stands to lose her home after taking out a series of highin loans that have left her hopelessly in debt why the loans it kind of helped to balance out what I was short her salary as a paralal for LA count was not enough to make ends meet desperate to hold on to her house she answered a slick sounding ad that turned out to be too good to be true I paid him for it you paid him $30,000 for it to take your house well yeah sort of Craig agreed to pay $30,000 and share title on her house to a foreclosure rescue Company the company said it would use equity in her house to pay off her debts and her credit would be repaired after a year she thought she'd get her house back there should be a huge red flag for anybody who offers to do this for money because there is no reason to pay for help loan modifications can be done for free in the typical scam the homeowner transfers title to a third party who promises to secure a lower interest rate on the mortgage but what often happens is the third party cashes out the home's Equity leaving the homeowner as a renter this is the American dream and they're losing it and someone's coming and they're going to rescue them it's very very appealing in California so many people have fallen for this scam the Attorney General issued a consumer alert but the warning came too late for Alexandria Craig her house is in foreclosure and next week she's being evicted both the Foreclosure rescue company and the bank foreclosing on her house deny any wrongdoing you feel like you're drowning and you feel like there's nobody throwing you a life rft barring a miracle Craig says she'll be moving into her car next week losing family memories and her American Dream Bill Whitaker CBS News Woodland Hills California