Spotting the signs of a bad mortgage deal

FRESNO, Calif. (KFSN) -- Con artists peddling mortgages can cost you a fortune. So how can you avoid getting trapped and detect the sure signs of a bad deal?

Jonathan Mendoza owned and operated a mortgage company called MC Financial.

"He probably opened with the intention of being legitimate and to provide people with home loans back in the heyday of mortgages when banks were willing to lend to almost anybody," said Jeremy Leder, a U.S. Postal Inspector.

At some point, Mendoza took a different path and began targeting vulnerable applicants.

"He frequently took advantage of Hispanic families that didn't speak English," said Leder.

He would take prospective buyers' personal information and tell them he would help them buy a home. Essentially, banks would pay Mendoza more than the actual sale price for the home and he would pocket the extra money.

"The victims in this case didn't know what kind of deal they were going into and they were stuck with this house," said Leder.

More than 50 mortgages and $3 million in losses were involved in this scam. If victims tried to question Mendoza on his numbers or paperwork, "he would threaten them with violence or turning them in for deportation purposes," said Leder.

Mendoza along with three co-conspirators were convicted in this case. They faced conspiracy, bank fraud, wire fraud and mail fraud charges and were sentenced to four years in prison.