Local woman seeks class action in mortgage refi scam
Wednesday, 09 January 2013 09:54

Looking for others who were scammed

by Ben Boehl

    West Inverness resident Lynn Kreglow was looking for a lower interest rate on her mortgage. She met with Adolfo Vazquez of Alliance Mortgage Protection after finding him online and he offered her a plan to receive a modified mortgage.
    Because Kreglow’s family had recently moved in with her, Vazquez told her to try to apply as a hardship case. Kreglow gave Vazquez two separate checks for $1,000 each and was told to withdraw money from the account that her mortgage company used to receive payments. Kreglow said she had refinanced before and it appeared that Vazquez was performing the proper protocol.

    “He came over to my house and we were treated like my last [experience with] refinancing. His paperwork seemed legit. The only difference was this time there was no fees,” Kreglow said. “I was paying [an interest] rate of [over 6 percent] and he told me I could get 3 percent. I’ve heard of people getting 3 to 4 percent.”
    Three months had passed and Kreglow got a letter from her mortgage company about payments that were still due.
    She called up Vazquez and was told not to worry about the mortgage company and ignore the letter.
    “He made me feel comfortable. He kept telling me about the ‘underwriting’ process,” Kreglow added.
    When she got a second letter, she called up to find some information and learned that Vazquez never tried to get her approved for a modified mortgage.
    Then Kreglow learned she owed her mortgage company six months of payments. Kreglow found out that Vazquez never wrote her hardship letter to her mortgage company.
    Kreglow wanted a “hardship” case because her adult son got sick and he, his wife and their three children moved into Kreglow’s residence.
    After meeting with a representative from the state, she was told that having relatives moving into a home is not a “hardship” case.
    Kreglow explained that the state recommended that her son and his family try to seek assistance from the state and not involve Kreglow and her husband. Kreglow doesn’t understand the system.
    “You (the state) don’t want me to get a lower rate, but you want my son’s family as a burden on the state,” Kreglow asked.
    Bizapedia.com, a private website that profiles companies across the nation, confirmed that Philadelphia-based Alliance Mortgage Protection  was owned by a Adolfo Vazquez.
    However; Kreglow said that Vazquez spelled his name ‘Velazquez’ on his business card.
    A complaint was filed by the Maryland Department of Labor, Licensing and Regulation (DLLR), but the agency told Kreglow that they can only fine and not prosecute Vazquez because he is out of state.
    DLLR also told her that Vazquez was being prosecuted in Pittsburgh.
    Maureen O’Connor, a spokesperson for the DLLR, confirmed that Vazquez is under investigation, but couldn’t comment.
    “The Maryland Department of Labor attorneys have advised that we cannot comment on an open investigation,” O’Connor said.
    There was no record of the Vazquez’s case with the Commonwealth of Pennsylvania, but a DUI charge from May listed him with seven different alias.
    No one from the U.S. Attorney’s Office of the western district of Pennsylvania returned phone calls.
    Even though the DLLR might get a fine from Vazquez, Kreglow was told she won’t receive any of that money.
    Her plan is now to file a class action suit against Adolfo Vazquez of Alliance Mortgage Protection. She is seeking others that might have some involvement with Vazquez.
    Kreglow is still trying to get out of foreclosure. She told The Eagle she had the funds to pay off the back payment to keep her 25-year residence, but it looks as if she won’t be able to get that modified mortgage.
    “Hopefully we will be back where we were (before the Vazquez situation), but we are minus $2,000,” she said.