1/25/2011 8:35 AM (PST)

Loan mod scams continue to proliferate and scam distressed homeowners, especially in the hardest hit states of FL, CA, NV, MI, and AZ. For a lot of money, it appears you can join "Audit and Stop" and buy some research and documents. I doubt your friend will save his home with whatever service he's buying from this outfit. He should report his experience to the Attorney General of the state he lives in and file a complaint with the BBB.

If you are having trouble making your mortgage payments we would recommend that you first seek a loan modification through an approved HUD approved non-profit housing counselor ASAP. Call the national foreclosure prevention hotline at 888-995-4673 to speak with a HUD certified housing counseling agency. They can evaluate your housing options, open lines of communication with mortgage lenders, negotiate a loan modification, and help you with household budgeting, all at no cost.

When you call this nat'l housing counseling hotline you can have a complaint against any foreclosure/loan modification company you've dealt with entered into the national loan mod complaint database (www.preventloanscams.org) at the same time, so that you don't have to go to that site and duplicate your effort. Be sure to mention to the housing counselor that you want to do this.

www.preventloanscams.org was launched in March 2010 and they’ve got an online complaint form for referring loan mod scams to law enforcement agencies. Also, take a look at our Facebook page article on the FTC rules for loan modifications that have gone into effect:

http://www.facebook.com/notes/bbb-of-the-southland/ftc-issues-final-rule-to-protect-struggling-homeowners-from-mortgage-relief-scam/10150105515042195

Special assistance programs are being launched early this year by several states, but it's unknown at this time what lenders are participating. In California, check http://keepyourhome.calhfa.ca.gov/ for updates.

In Florida, check
www.floridahousing.org/HousingResources/ForeclosurePreventionLinksAndResources/FloridaHardest-HitHelpProgram/

Michigan - www.michigan.gov/mshda/0,1607,7-141--235359--,00.html

Arizona - www.housingaz.com

Nevada - www.nvhousing.state.nv.us

Good luck, the loan mod journey is not an easy one.

1/25/2011 6:10 PM (PST)

Thanks so much. I will pass this on to my friends hoping that they will do as you suggest before it's too late.