CHARLOTTE, N.C. — A local woman gave a company thousands of dollars to help lower her mortgage payments, but once she gave up her money she never heard from the company.
Action 9 found out what the company did was illegal.
Ethel Mumford has been struggling to hold onto her house with an $110,000 mortgage.
Payments from were reduced from $847 to $247 a month on a trial loan modification two years ago, but never made it permanent.
That is when a company named RMA Legal Network told Mumford it could help.
Action 9 asked what the company told Mumford they could do.
"Ah, they would get me a modification and my monthly payments would be lower than my mortgage," said Mumford.
Last April she said RMA Legal Network had her fill out loan forms online and convinced her to pay them $2,600 up front.
Mumford said after they got her money, they stopped returning her calls.
Action 9 called the company and left messages, but no one called back.
Action 9 also looked at their website, which said the company will be ceasing operations to comply with regulations regarding loan modifications.
The Federal Trade Commission is cracking down on companies that take upfront fees for loans. The Better Business Bureau said that's illegal in North Carolina.
Mumford has now turned to a nonprofit government-approved counseling agency to get a modification free of charge.
After her experience, she has a message for distressed homeowners.
"Don't jump on it because they are telling you what they can do," said Mumford.
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