Two Los Angeles homeowners may get jail time for their fury over a failed home-loan modification. (Photo: iStockphoto)
It's been awhile since I've hung out in the real estate crime beat, but here we are again. I ran across this story recently about a couple in Los Angeles arrested on charges that they tortured two purported loan modification agents that they suspected of ripping them off. According to Reuters, Daniel Weston and Mary Ann Parmelee owned a house together that was in foreclosure. They had tried to get a loan modification, had been frustrated with the lack of results, and wanted their money back.
At some point, they concluded they’d been swindled and decided that a refund wasn’t enough. What they really wanted was to beat the crap out of these guys. If convicted, they could face life in prison, according to the Reuters article.
I’m not condoning their actions, but knowing some folks who have tried unsuccessfully to get their loans modified, I can see where that frustration could lead to rage, especially if I thought the person I trusted to help me turned out to be a crook. There’s nothing more heinous than con artists who take advantage of people who are vulnerable. It’s one thing if people are taken in because of their own greed; it’s quite another when they’re targeted because the scammers know they’re on the verge of losing their house.
The story also pointed out that this crime occurred about the same time that local housing advocates were rolling out a campaign to warn homeowners about mortgage rescue scams. If you're in the midst of pursuing a loan modification, you might want to check out these tips from the Federal Trade Commission on recognizing the signs of a foreclosure rescue scam.
—Pat Curry