There are thousands of homeowners facing foreclosure in California who are desperately trying to hold on to their homes. Many loan modification companies are now advertising that they can help those homeowners.
But CBS 5 Investigates finds some consumers who signed up with those companies, paying thousands of dollars, say they received minimal help if any and say their money was wasted.
The ads are everywhere on the Internet and on the radio, such as the one from Saving California that tells listeners the company is "Saving California, one home at a time."
Marta Mendez heard an ad like that one in Spanish. "I thought it was a non-profit that will help you," she said.
She needed help because she and her husband faced foreclosure on their Watsonville bungalow. "For me the house represents the whole thing, the family, my husband, everything," said Mendez.
Mendez said she met with a representative from Saving California. "He told us the way they work is they work with the bank to lower our payments," she said. She said the company acted as middlemen for a fee, to negotiate a loan modification. "He said that as soon as I bring the money they can start working with the bank."
The Mendez’s signed up, paying $3,500 to Saving California’s parent company, Whitfield Financial, run by Ray Jeter. But after two months with no word, she called her bank to see if they’d received the modification request.
"They said no, nothing, nothing is here. We don’t have no paperwork here for you," she said.
She said she wound up negotiating the loan modification herself.
Her opinion now of Saving California? "They ask you for some money, and they don’t do anything for her," Mendez said.
Then there’s Keith and Millie Dixon. They signed up with a San Diego company called People’s First Financial after getting a phone pitch.
"He just kind of said, you know, I am with this company, and we do loan modifications,and I was just desperate to go with something and so I just said wow, okay," said Millie Dixon.
In hopes of saving their home, they paid $3,000. Keith Dixon said, "I went online, checked the BBB (Better Business Bureau). It just sounded like a dream come true and, I believed it."
When the company told them in an e-mail that their loan modification had been "approved," Millie Dixon said, "then I am like, oh my God, we finally got some hope here. We’re going to save the house, we’re going to. After that...I never heard from (the company’s representative) again."
The day before Thanksgiving, they say the phone rang and a representative from People’s First Financial informed them they would lose their home.
Millie Dixon said, "I was devastated. That was really bad! I was really upset."
I paid they and still lost my house! I have sent in complaints to the
