Family warns others about loan modification companies

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PHOENIX -- A Valley family says they hired a company to help modify their home loan. Now, they wish they didn't do it.

Even the Federal Trade Commission says to modify your home loan, do it yourself by getting on the phone and calling your lender.

But, some people say they'd rather pay a company to do the calling for them and that's what a Valley family did.

Robert Reeves has an expanding family.

"We have four children that we are legal guardian of and we are in the process of adopting," Reeves said.

There's Joey, Charlie, Mikey and four-year-old Rosie -- all siblings.

Reeves and his wife took them all in after the courts removed them from their natural parents and the kids were in jeopardy of being separated.

"We just said, 'We'll take all four of the children," Reeves said. "All they have is each other. Why separate them?"

But after expanding their family, Reeves says he and his wife are losing their home.

Following an accident that left Reeves with a shrinking income, he says it's become difficult to keep up with the mortgage payment.

"Our payments were $2,620 a month," Reeves said. "We were hoping to bring them down to $1,800 a month so we could afford to make our payments again and save our home."

To help out, Reeves simply wanted to extend the 15-year mortgage to 30 years to reduce their house payment, but Reeves says his mortgage company wouldn't agree so he hired two companies that specialize in modifications, Interest Direct and NationsChoice Mortgage. According to documents, both are run by a guy named Chad Fisher.

"He had told us, 'Oh, you are approved for this loan, it's guaranteed," Reeves said. "So, we thought OK, we'll take a chance."

That chance and that guarantee came with a big price tag.

According to Reeves, to get things started he signed paperwork with NationsChoice Mortgage and Interest Direct and then handed over more than $5,600 to Interest Direct.

"A week after our last payment, they came back and told us that we didn't qualify, that they couldn't help us get the new loan," Reeves said.

So, Reeves contacted 3 On Your Side.

"I just thought, well, we got ripped off and I'm going to put a stop to other people getting ripped off if I can," Reeves said.

3 On Your Side got in contact with Fisher. In an e-mail to us, he pointed out that the contract clearly states that his company will do one of three things.

1. Obtain a lower mortgage payoff.

2. Obtain a modification.

3. Suspend the foreclosure date.

And Fisher says his companies temporarily suspended the foreclosure date by a few months, meaning he lived up to his end of the bargain.

Reeves says knowing what he knows now he would have kept his $5,600 because, in the end, he and his family will still lose their house.

"It was guaranteed. That's what sold us, that he kept telling us," Reeves said. "He and his boss, Chad, even came in and spoke to us and both of them told us this is a guaranteed loan."

The Federal Trade Commission suggests to be very careful when handing over money to a company for a loan modification. For more information, visit .