Shirley Hale, 72, got into financial difficulties and fell behind with her mortgage payments on her home in Hattersley, near Hyde.
She was worried that her home could be repossessed so she took a `rescue' package she saw advertised.
Mortgage rescue companies buy properties from homeowners who want to release themselves from their mortgage. They usually offer lump sum cash payments and the option to remain living in the house as a tenant.
The buyer - Repossessions Stopped! - valued the property at £85,000, but offered Shirley £60,000 for a quick sale.
She agreed to rent it back for £300 a month so she could remain in her home.
Grandmother-of-10 Shirley paid off her debt but within months she had received a court summons - the mortgage that the firm had taken over was not being paid by them.
Shirley, who is divorced, attended the court hearing regarding the repossession, but as she was only a tenant in the property she was not entitled to speak in court. She was evicted and has just moved into a council flat in Hyde.
She said: "These offers are very tempting and look like a good deal. But people who do what I did are taking terrible risks." Shirley's case is being used by housing charity Shelter to warn people about the danger of such problems. There has been a steady growth in the number of private companies offering these packages, targeting people facing financial difficulties or mortgage arrears.
Although adverts imply the homeowner can stay in their property and get an immediate solution to their financial problems, they are often misleading. Adam Sampson, of Shelter, said: ""People should seek independent financial advice before selling their home through a mortgage rescue scheme."
The M.E.N. tried to contact Repossessions Stopped! but was unable to get a comment.
Shirley's story will be highlighted in tonight's instalment of The Truth About Property, on BBC2 at 8pm.
FOR further advice on mortgage rescue schemes go to www.shelter.org.uk/mortgagerescue or call our free housing advice line on 0808 800 4444. Tweet
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Isnt it just great how we look after our own?????
More greedy mickey mouse fly by night bent firms which need to be closed down and all their assets seized
What ever happened to Consumer rights?Then they had the cheek to win in a Court of law.Blood and Sand.
What financial institution allowed this lady to have a mortgage that ran past her retirement age - the retirement pension amounts to £330 per calender month and she has a mortgage, obviously she has no private pension or she would not be in a financial mess. She tried to help herself and look what happened. The company who bought the house from her remortgaged it for a sum higher than £60K, pocketed the balance and had no itention of funding the mortgage because I would guarantee her £300 per month rent would not have even covered the remortgage of the property. Shame on you firstly whover let this lady have a mortgae than ran for that long and shame on the company who bought from her and left her high and dry.