There was some pretty good advice in the advice section of CNNmoney.com recently. Here is the excerpt:
Question 1. My husband went to company who claims they work with the mortgage company and negotiate on your behalf “for a fee.” They claim we as homeowners cannot do this on our own. Now I am beginning to think we made a very big mistake. — Worried in Florida
Unfortunately, it sounds like you’ve been conned.
First of all, if you need to modify your mortgage or you’re having trouble making your monthly payments, your first phone call should be to your lender. These days lenders are instituting their own modification programs for troubled borrowers. You should not pay a “fee” to any company that says it can negotiate with your mortgage company.
My advice: call your lender and explain your situation.
The government also has its own mortgage modification program that lenders are signing onto. For information go to makinghomeaffordable.gov. In the meantime, report the company that you’ve been using to your local Better Business Bureau and give a call to your local state Attorney General.
Any loan modification company that tells you that you must pay just to seek a loan modification is lying. Our advice regarding loan modifications is always the same: Contact your lender yourself and seek a loan modification. That is free and it has worked for many people.
The problem is that too often lenders reject such requests after repeated attempts. People who have been turned down in their loan modifications often come to us asking what they can do next. While there are too many shady loan modification companies popping up these days, there are legitimate loan modification companies out there as well that might be worth talking to in such situations. The legitimate companies we are aware of give free evaluations to people and offer money back guarantees to clients for whom they cannot secure a loan modification. Further, many of these companies also have divisions or partners that help people repair damaged credit and repaired credit can often qualify the client for a refinance rather than a loan modification.
If you need are in trouble and need a loan modification and have contacted your lender and have made no progress, you can contact us and we can refer you to a reputable loan modification or credit enhancement company.