There are still many homeowners in the nation struggling with foreclosures and doing what they can to prevent foreclosure on their homes. Unfortunately, as with many other things involving desperate times, there are less-than-formidable people ready and willing to take advantage of a homeowner’s desperation.

Not On the Up and Up
Companies that are offering loan modification assistance to those homeowners in foreclosure trouble are also typically offering a world of trouble to those already having a rough time financially. Many consumers are contracting with such companies in the hopes of getting serious help. They are paying sizable upfront fees to get help with their mortgage, only to find the company has done nothing in the way of help but has run off with their money. Consumers who then try and contact the company are greeted with disconnected phone numbers or automated voice machines that offer no valuable assistance.

On The Hunt
Sadly, many such companies are known to review foreclosure notices in the newspaper and approach homeowners they know are in trouble and facing foreclosure. The company then promises to negotiation with the lender to get lowered interest rates, remove late fees and penalties, have past due payments forgiven, or lock in a fixed rate on a variable loan. The promises all sound good to the consumer who is willing to try anything to save their homes. The reality is that these companies charge an upfront fee and never follow through on any of their promises – leaving the consumer out more money and still in danger of losing their home.

Bad Odds
According to experts, most lenders would find it in their own best interest to foreclose on your home rather than modify your loan terms. A very small percentage (less than 10) of consumers are actually able to make the renegotiation work in their favor. In fact, most banks do not even get to make the decision whether to approve a loan modification or not. The original investors are the only ones who can make that kind of call.

Experts also said that homeowners who are in danger of foreclosure should not give up on the idea of working with the lender during times of financial hardships. They say you should still contact the lender directly and discuss your situation in order to find options to help you keep your home. You can do this on your own and avoid any third-party that claims they can do a better job than you can. It will only cost you money you don’t have and more financial problems in the long run if you do contact outside agencies that promise to stop your foreclosure.

During the financial turmoil all over the nation, consumers still have to be worried about falling victim to the increasing amount of scams in addition to worrying about staying on track with their personal finances. Due to the increasing rate in the number of home foreclosures, many consumers are looking to get help and at that point they are usually in a desperate situation. It is these vulnerabilities that leave consumers open to the predatory people who are looking to take their money while promising to save their home. They post guarantees to cease foreclosure on the internet, television and in the newspapers. Out of desperation, many people will do anything to save their family’s home but end up getting taking for a ride. The con agency takes your money and becomes invisible and you end up losing your home anyway.

How To Spot The Unscrupulous People
Con artists today have a big advantage with technology. There are many ways to make their “company” look legitimate and official. Keeping tabs on what’s real and what isn’t is no easy task. One red flag should be companies that name their company or use a URL address that is similar to the various governmental programs available set up to help homeowners. Some even go so far as to say they are affiliated with the governmental assistance.

Here are a few tips for evaluating different loan modification assistance companies:

• If you are contacted by phone, do not hesitate to ask for a call back number, which can help you confirm the companies identity when you call them back. If the representative declines to give you that number, hang up and do not divulge any personal information.

• By phone, email, or mail, if you are asked to pay upfront fees or give out personal financial information, it’s a big red flag. Legitimate companies would never ask you for any of this information without the proper paperwork or signed agreement.

• When reviewing websites, look for URL addresses that end in .gov. Even if a site has the word “government” or other related terms in their address, does not mean they are legitimate.

• You should never have to pay for assistance. There are HUD approved counseling agencies that offer free advice and assistance with preventing home foreclosures.

Keep in mind that the marketing tactics scam companies employ can be very good and easily misleading. They are very aware of how impatient and desperate people are to keep from going into foreclosure and they will capitalize on that desperation in every way they can. The money you are handing over will be stolen instead of used for saving your home. Visit a legitimate agency for help or check out the Obama administration’s Make Home Affordable website for more information about saving your home.