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.