The scammers are very deceptive often presenting themselves as representatives of the Obama Administration. They send official looking documents which lead you to believe that they are legitimate, but they are not.

If a loan modification company asks for big up front fees or any fees up front for that matter, run don’t walk away.

You can read more about these scammers here.

You may have no alternative but to seek foreclosure advice or a home loan modification. If that is the only way out of your crisis then you should not be afraid to pursue it.

There is no question that the mortgage industry has gone through some incredible changes over the last two years or so. Prior to these change, a very common loan was the “No Income Documentation” Loan. This loan was actually a very good alternative for self employed borrowers who do make a good income, but because the nature of their business, show little profit on their tax returns.

But with all the turmoil in the real estate market, “No income verification’ mortgages have all but vanished. If you can not prove enough income to justify the mortgage, you are out of luck. The problem with that is that it leaves many good and qualified borrowers out in the cold. The are unable to take advantage of the new lower interest rates or are unable to refinance their adjustable rate mortgages that are climbing higher and higher.

When this happens to you, a home loan modification may be your only alternative. But you should be careful about negotiating such a move on your own. Many lenders are slow to negotiate with private individuals and  in many cases refuse to modify the mortgages at all.

If at all possible, you should seek the advice of a company or attorney who is knowledgeable and effective in obtaining meaningful home loan modifications. These companies are easy to find. But you should choose among them carefully.

Always be sure to read the fine print. Always ask for referrals from recent clients. And always read all documentation before signing anything.

Once you go through the proper steps of choosing a good Home Loan modification company you will probably get better results than if you tried to accomplish this on your own.