The Sernas were victims of mortgage modification fraud.
The Illinois Department of Financial and Professional Regulation has fined 11 companies in the Chicago area for mortgage scams. Each non-licensed firm received a $25,000 fine.
Vulnerable homeowners had fallen prey to these companies that promised to modify home loans. The companies had charged families thousands of dollars even though there are free loan modification programs.
“Strict enforcement against these unlicensed predators should send a message that we will act aggressively to pursue and stop these predators,” said Brent Adams, Secretary of Financial and Professional Regulation. Since 2009, Illinois law has required all individuals and firms that do loan modifications be licensed by the IDFPR.
The Brighton Park neighborhood on Chicago’s Southwest Side had been hit particularly hit hard by the mortgage fraud schemes IDFPR clamped down on. Brighton park organizers canvassed the area this summer to educate families that these firms wouldn’t save their homes.
“We were really happy because we were waiting for something to be done for a long time. For us to be a part of this was really significant,” said Mariela Estrada, a housing organizer for the Brighton Park Neighborhood Council. She said many of these companies change their names many times over. “We’re definitely keeping an eye on that.”
This year the Serna couple had doled out $1,500 to a mortgage company offering false promises. In July of 2010, the Sernas were waiting for word from a judge on whether their house would foreclose. While they waited the Sernas helped pass out yellow flyers in their Brighton Park neighborhood, warning of the swindles.
The Sernas were able to keep their house. The fraudulent company they paid is one of the businesses the state eventually fined.
The firms that received fines are: Opportunity Consultants, Carrey Services, American Accurate Services, Gamez & Associates Ltd., Juan Hernandez, Home Loan Modification, Homeowner’s Advocates Centers, Imperium Realty Group, Mortgage Mitigators, Mi Familia, and Loan Rescue Corp.
Originally reported by Chicago Public Radio. Read the original article here.