For those of you contemplating hiring a mortgage modification firm, here is some valuable information found on the Federal Reserve Bank of San Francisco's website under the "Consumer Information" tab:

Beware of Foreclosure Rescue Scams - Help Is Free!

Foreclosure rescue and mortgage modification scams are a growing problem. Homeowners must protect themselves so they do not lose money—or their home.

Scammers make promises that they cannot keep, such as guarantees to “save” your home or lower your mortgage, oftentimes for a fee. Scammers may pretend that they have direct contact with your mortgage servicer when they do not.

The Federal government provides free resources to get you the help you need. Homeowners can call the Homeowner’s HOPE™ Hotline at 1-888-995-HOPE (4673) for information about the Making Home Affordable Program and to speak with a HUD-approved housing counselor. Assistance is available in English and Spanish, and other languages by appointment.

Tips to Avoid Scams

1.Beware of anyone who asks you to pay a fee in exchange for a counseling service or modification of a delinquent loan.
2.Scam artists often target homeowners who are struggling to meet their mortgage commitment or anxious to sell their homes. Recognize and avoid common scams.
3.Beware of people who pressure you to sign papers immediately, or who try to convince you that they can “save” your home if you sign or transfer over the deed to your house.
4.Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.
5.Never make a mortgage payment to anyone other than your mortgage company without their approval.
What to Do if You Have Been the Victim of a Scam

If you believe you have been the victim of a scam, you should file a complaint with the Federal Trade Commission (FTC). Visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357) for assistance in English or Spanish.

More Tips to Avoid Scams

•Federal Trade Commission
Watch the Foreclosure Rescue Scams Video on the FTC ’s YouTube Channel.


•Office of the Comptroller of the Currency
The U.S. Department of the Treasury’s Office of the Comptroller of the Currency provides tips and materials to help homeowners avoid mortgage modification and foreclosure rescue scams. Find them here .


•NeighborWorks America® Loan Modification Scam Campaign
Congress asked NeighborWorks America® to launch a national public education campaign to empower homeowners to protect themselves against loan modification scams, find trusted help, and report illegal activity to authorities. The U.S. Department of the Treasury partners with NeighborWorks America® in this campaign effort. Learn more about the campaign here.


•The Obama Administration has launched a coordinated effort across Federal and state government and the private sector to target mortgage loan modification fraud and foreclosure rescue scams that threaten to hurt American homeowners and prevent them from getting the help they need during these challenging times. Click here for more information