Beware of Loan Modification Scams

Anytime people face adversity there are always those waiting in the wings to exploit them and prey upon their situation to make a buck. One of the most prominent scams that have hit our industry over the last year has been loan modification companies. They target people who are behind in payments, facing foreclosure and offer them hope under the guise of expert advice and the promise to obtain a loan modification that will help them get out of their financial problems with their bank.
On the face of it, this appears to be a laudable goal but the reality is that they require some degree of payment up front, and then fail to provide the sought after modification. In some cases, it has been shown that they take people's money and don't even try to obtain a modification. Basically they take money from people who are already facing financial difficulty and often fail to deliver any relief.