A mortgage relief services company called me today and noted that they can save my home from foreclosure. The cost for the program is $2900.00. I am considering the program but do not want to be scammed. Are they allowed to assess the fee before the service is provided?

Providers are generally banned from collecting fees until the provider gives you two documents:

  • A written loan modification offer from a lender or servicer that is acceptable to you and
  • A written document from the lender or servicer that describes the key changes to the mortgage that would result if you accept the offer.

If the loan modification is a trial modification, the provider may not collect a fee if it does not disclose that the modification is temporary and you may not qualify for permanent relief.

The provider must also remind you of the option to reject the offer without any charge.

March 2011