I’ve been down and I’ve had financial problems but as soon as a company tells you they will solve all of your problems AFTER you give them $1200.00 would make anyone with 1/2 a brain have second thoughts.
No argument there. I object to the cartblanche labeling of "idiots" for buying more house than they can afford. I have been there as well. Then the market to a dump in 2001, My family was living in Austin (hit VERY hard). My wife and I were bringing in GOOD money. We had our first kid on the way a very manageable mortgage, $400/month auto payment, etc. Her company went out of business, bonuses and raises were suspended at my company, house went upside down by $20K and was forced to relocate to the NE or go work at Home Depot. Tough times.
We didn't get scammed but never bought too much house and are not "idiots." We did get pretty desperate there for a while, however, and did a little "legal" scamming of our own with our finances and mortgage companies.
She should have renegotiated her terms with the mortgage company...the last thing they want is to take back the house.
These scammers are fairly common in the consumer credit market. Around here a paralegal will charge a couple of hundred dollars to work out the same kind of arrangements that credit counselling agencies will do for free.