Ted Burleson, 73, said he lives on a fixed income and is left with just $400 a month to pay bills after he pays his mortgage company. He jumped at the opportunity to lower his mortgage payment when Kannapolis-based The Lamb Group called him nine months ago.
"They told me it would be $1,495, but if I paid it all at one time, it would be cheaper: $1,270. So that's what we did," he said Monday.
The upfront fee was supposed to drop Burleson's mortgage payment $300 a month and, as part of the deal, Burleson was told not to contact Bank of America, his mortgage lender.
He didn't, but a few months later, he received a letter from Bank of America and decided to contact The Lamb Group just to be on the safe side.
"The Lamb Group said that I violated the rules, which I did not," said Burleson.
The president of the foreclosure assistance company even contacted Burleson by e-mail to say the company was canceling its services.
"They told me there would be no refund. They did not have to refund my money because I broke the rules," he said.
The Lamb Group was recently banned from collecting money by state Attorney General Roy Cooper. Under North Carolina law, it is illegal to take money up front for foreclosure assistance or loan modifications.
The president of the company told FOX8 he did not scam anyone and the only reason the homeowners haven't received their refund is because they broke the agreement by contacting their mortgage lenders.
"It's eventually going to wind down to where I am going to be late with a payment," said Burleson. "So far, I haven't been late, but once you get late with a payment, then you are right next to foreclosure."
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