Family taken in scam involving fake mortgage company

MILWAUKEE (WITI) — A family looking to save money on their mortgage are out even more after trusting a company that doesn’t exist! It’s a tough lesson Contact 6 says will protect you from the same situation.

A mound of paperwork is all Linda Sutton has left after losing $3,000.

Sutton says she got a call from a company called “Legal Educators USA and Company” — offering the chance to lower her mortgage payments for a fee.

“Two payments of $1,495 and then we’ll get your paperwork rolling.  And within 2-3 months, you should have a loan modification,” Sutton said.

Sutton and her husband thought it sounded like a good deal, but were told they had to act fast.

“If you didn’t get that money in, the loan modification wasn’t going to go through,” Sutton said.

Sutton sent the money in — and sensitive banking and billing information. She was also told not to make mortgage payments to her lender.

“When we called to speak to Bank of America and verify, they said we don’t know anything about them.  We haven’t gotten nothing,” Sutton said.

That led Sutton on a long trail of trying to track down someone from Legal Educators USA for an explanation — but Sutton says she never got a response.

“I’ve called them, I’ve emailed them, I’ve done everything I can to get our money back to no results,” Sutton said.

It’s a scenario Randall Hoth with the Wisconsin Better Business Bureau says he has seen again and again.

“As soon as you feel high pressure to close, that’s when you go slower,” Hoth said.

FOX6’s Contact 6 says not only does the company’s website not exist, its email address bounced back messages. Additionally, there are a lot of complaints online about the company.

“Talk with your local attorney.  Talk with a local housing counselor.  Talk with a local mortgage lender that’s licensed.  This company may not even be licensed to do business,” Hoth said.

Contact 6 also learned Legal Educators USA and Company is not licensed in its home state of California to do loan modifications.

Contact 6 advises taking the time to look into any offer for a loan modification, because a quick check could save you big bucks!

2 comments

  • Ray

    This is the most ridiculous expose on a company I have ever seen.
    First of all, the BBB is being shutdown because they were taking money from companies in order to get a better rating. I believe they are being shutdown as this is being written. Second of all, all banks that are working w a third party always state that they have no information from the third party because they are lying, bottom line, I think this news caster needs to do more elaborate research before airing some stupidity such as this.

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