I DO think it's a problem. There are many confused homeowners recieving bad advice, or being outright scammed. Of course, this isn't always the case, see below. I would agree to work locally and be careful whom you share your personal information with. For instance, a woman in Ms. located a company on the internet located in Ca. She sent all her information, and paid a substantial fee to have "assistance modifying her loan". It has been over 3 months, and these people, whomever they are ,don't even return phone calls. I'm sure you can guess why.
Please, consult an attorney, go to government websites, work with your bank directly;USE PROFFESIONALS you can meet in person if you need to! but beware of people you don't know promising the world, for a fee of course.

i think you should be a lisensee in order to do modifications or be a mortgage broker or realtor

I am an attorney. I have been hired to research loan modifications in various states. What I have learned is that every state has a different law. In order to do loan modifications in SC, you have to be a licensed debt counselor. In FL, mortgage brokers can not charge a fee for loan modifications. In Ct, attorneys can not do loan modifications, but mortgage brokers can perform loan modifications. Nevada does not allow any upfront fees at all. I can go on like this forever. However if the individual states do not get together and create a unified system for loan modifications, then there can not be a modification system nationally. If you would like an example of what can be done, I would suggest looking at the parameters around the NMLS.

I agree. Like in any business there will be people who bring the good ones down. My company for example is headed by myself a dedicated Realtor and my Partner A NY , NJ Attorney. We employ a full staff of atty's and paralegals... We do not charge our fee until we have completed the modification and the client is happy. We only take a 585 fee upfront to deal with the costs of salarys involved on working on these modifications. We average about 92% success rate. If we do not feel we can do it, we recommend a short sale at that point. If someone is talking to a modification company with no attorneys, they should run the other way.

Hi Lisa,
I live in the Hudson Valley, in Putnam County.
My office is in Manhattan.
Loan modification is a life saver for many people. There is nothing more enjoyable than helping a family that thought all was lost come back from the brink and save their home from foreclosure.

Wow, I have been talking about this often lately. I DO think it is a growing issue that we will be hearing more about! There are only certain people who should be doing this kind of work: Attorney's, Banker's, Mortgage Professionals, and Real Estate Brokers (perhaps). I think it is REALLY dangerous to deal with an individual or a company from who knows where and then disclose all your personal information, identification information, and then send them money and possibly confidential documents. My advise would be to find someone local to meet with who can help you if you really do need help. An attorney should be in the picture to try and not make a bad situation worse! A loan modification CAN be a life saver! It can possibly save you from a foreclosure, a bankruptcy, beiing forced to sell your home! Today this sale might very well result in a short sale and a loss. We all need to do what we can to help people in this difficult time and in difficult situations. Having people loos their homes helps no one! If Someone needs help and you are local to me, The Hudson Valley, New York, please contact me to talk confidentially!

Yes the DRE system in California is a decent model. I believe we as industry professionals should be policing our own industry and putting the crooks out there who take large upfront fees and then don't do the work out of the business.

Yes, like California. All loan modification corporations should be licensed. A loan mod corp should charge clients after some sort of approval given from the lender.