With so many people facing foreclosure today, thousands of loan modification companies have emerged offering a financial lifeline. Unfortunately, most demand big upfront fees, are not sufficiently educated in the industry to actually help, and may hurt by wasting valuable time and effort, or many companies (about 75%) are in the business to scam people. As stated by Illinois Attorney General Lisa Madigan…"If you are struggling to make your mortgage payments, or if you are facing foreclosure, stay away from anyone who says that they will save your home for money upfront".

Loss Mitigation Specialist C. Thompson Sr (Nationwide Assistance, Clermont, FLA), has determined several tale tale signs of scamming by these companies:

• Charges a huge upfront fee- the purpose of the fee is to contact the lender to ask for a loan modification. But, if turned down, only half the fee or none of the fee is returned. In these cases, there should be a money back guarantee.

• Will not explain the purpose of the fee- all services should be explained and all questions answered.

• Is not interested in your circumstances- may not have your best interest at heart.

• Does not stop the foreclosure proceedings during the negotiation.

• Will accept the first proposal from the lender, which may not suit your circumstances.

• A virtual company-no real office- may not be a real company...

• Too good to be true- promises a fantastic interest rate or/and an exact principle reduction amount, without consulting the lender. No promises can be made without negtiating with the lender.

• No approval process-An approval process should be the first step in the modification process, before a fee is paid. The process should not include credit qualification, and approval should not be made on the first phone call.

• Not a member of the Better Business Bureau.-they are not a leader in the industry.

Fortunately, you can avoid these scams. There are other avenues to pursue if you need assistance with your urgent mortgage problems. Consider a non-profit agency that will assist you without charging a fee, or a real estate licensee and an attorney who will work and allow payment after the work is completed. You can also obtain free advice and consultation for your refinance, loan modification and foreclosure needs through several government agencies:

• Hope NOW - http://www.hopenow.com

• FHA - http://www.portal.hud.gov/portal/page

• California Department of Real Estate - http://dre.ca.gov/cons_adv_fees_alert.html

• Making Home Affordable - http://www.makinghoeaffordable.gov

The information presented above applies to home refinancing and loan modification abuse. However, if you are seriously looking to improve your finances in general, visit http://www.successinmasteringwealth.com to find out more.

About the Author

Audrey Robinson is a successful internet marketer and business coach. She helps others obtain financial freedom and independence. Visit her website: http://www.successinmasteringwealth.com/ 1-301-656-5548