1/25/2011 8:44 AM (PST)

Loan mod scams continue to proliferate and bilk distressed homeowners, especially in the hardest hit states of FL, CA, NV, MI, and AZ. Household Relief has an F rating with the BBB:

http://www.la.bbb.org/Business-Report/HouseholdRelief-100095231

If you are having trouble making your mortgage payments we would recommend that you first seek a loan modification through an approved HUD approved non-profit housing counselor ASAP. Call the national foreclosure prevention hotline at 888-995-4673 to speak with a HUD certified housing counseling agency. They can evaluate your housing options, open lines of communication with mortgage lenders, negotiate a loan modification, and help you with household budgeting, all at no cost.

When you call this nat'l housing counseling hotline you can have any complaints against any foreclosure/loan modification company you've dealt with entered into the national loan mod complaint database (www.preventloanscams.org) at the same time, so that you don't have to go to that site and duplicate your effort). Be sure to mention to the housing counselor that you want to do this.

www.preventloanscams.org was launched in March 2010 and they’ve got an online complaint form for referring loan mod scams to law enforcement agencies (but again, you don't need to do this separately if you call the national housing hotline at 888-995-4673).

You should also file a complaint with the BBB and please post a review here on TrustLink.

Take a look at our Facebook page article on the FTC rules for loan modifications that have recently gone into effect:

http://www.facebook.com/notes/bbb-of-the-southland/ftc-issues-final-rule-to-protect-struggling-homeowners-from-mortgage-relief-scam/10150105515042195

Special assistance programs are being launched early this year by several states, but it's unknown at this time what lenders are participating. In California, check http://keepyourhome.calhfa.ca.gov/ for updates.

In Florida, check
www.floridahousing.org/HousingResources/ForeclosurePreventionLinksAndResources/FloridaHardest-HitHelpProgram/
Michigan - www.michigan.gov/mshda/0,1607,7-141--235359--,00.html

Arizona - www.housingaz.com

Nevada - www.nvhousing.state.nv.us