You have to pay us and then sue the contractor for your money.".
An elderly couple with an outstanding balance on their mortgage of less than $1000 met three men who presented themselves as representatives of a licensed mortgage banker and arranged for a home improvement loan secured by a mortgage on their residence. The proceeds of the loan were used to construct a fifty-foot decorative fence.
After the refinancing required to pay for the fence, the couple owed $85,000 at 17.99% interest. In addition, the lender charged them $4,200 in pre-paid finance charges and the mortgage broker charged a fee of $6,800. These fees were deducted from the proceeds of the loan.
Another couple was approached by home improvement contractors and encouraged to take out a mortgage they could not afford. One was legally blind and the other was deaf. They were both house-bound. The work was never completed and the couple defaulted on the mortgage payments. The kindly lender agreed to convert the loan into a reverse mortgage so that the couple could stay in their home until they died.
An 88-year-old woman signed several home improvement contracts totaling over $17,000 for extensive roofing, gutter and chimney work. When she experienced continued problems after the work was performed, she hired a consultant.
The consultant reported that she was overcharged for each item, that unnecessary and shoddy work was performed, and that in many instances, they failed to perform any of the work specified and paid for in the contracts.
Detectives are investigating at least two cases of home improvement scams in which a con-artist -- who uses the name "Peter Spaziano" -- disappeared after collecting down payments for home improvement jobs that he never started. .
The suspect used an advertisement in a local newspaper to attract at least two Lakeland homeowners in need of home repairs. The advertisement listed "No Job Too Small," and offered a telephone number to call.