Home loan modification scams have been all too common in the United States during the current recession.? The head of the Federal Trade Commission has said that he is considering a ban on up front payments to companies that are advertising services to help home owners with their loan modification.? Government officials has said that companies are scamming home owners out of $1,000 to $3,000 in up front fees for their services.

Many of these companies that demand up front fees often do not pay off in the long run.? If you are weary of any company that is trying to help you through the home loan modification process it is best to walk way.? Do not pay huge up front fees for services that you are not confident will help you to modify your home loan.? The FTC recently filed civil charges against two companies in California; Nations Housing Modification Center and Infinity Group Services.

There is also a strong possibility that the agency will regulate the way mortgage assistance companies can advertise their services.? Many times, these companies will advertise on late night television or billboards scattered throughout the country.? Some of these companies depict themselves to be much more reputable than they really are.? Most of the ads were created to trick home owners into thinking that these companies were taking part in the government mortgage refinance process.

The Federal Trade Commission has filed 22 lawsuits against companies who are advertising services that they do not provide.? The firms are tricking borrowers to think that they are using the Obama mortgage refinance plan when in fact they are not.? If you are concerned about a home loan modification company you can always go to www.makinghomeaffordable.gov or call 888-995-HOPE.

Early on Thursday 12 state attorney generals met with Secretary of Treasury Timothy Geithner to discuss where to go with these fraud cases.? Please do your research before you give any home loan modification company money.? If they are demanding several thousand dollars in up front fees then it is much better for you to walk away and contact the Making Home Affordable website.

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Author: Jesse Wojdylo