More report losing homes to 'credit repair' deals

Seven more Hampton Roads residents have contacted The Virginian-Pilot since last weekend's report on a suspected area wide mortgage fraud operation, alleging that they, too, have been victimized.

Most of them have already lost their homes, and for the rest, it is an imminent possibility.

Some were long-term homeowners. One Virginia Beach man was evicted this week from a house that had been in his family more than 50 years.

In most cases, the circumstances were similar to those described in last weekend's report. Distressed homeowners, attempting to refinance their mortgages, were told their credit was insufficient and were referred to a "credit repair" company, which sold the homes to straw buyers. The properties were then refinanced and the equity taken out. Most ended in default and foreclosure.

Some of the homeowners dealt with Terry Mortgage Group and Clean Slate Financial Services, the companies mentioned in last week's report. The rest experienced similar problems with other companies.

The FBI is looking into the operation. To report suspected mortgage fraud, call the Norfolk FBI office at (757) 455-0100.