It seems the latest hot product is loan modifications.  Many former mortgage companies and others in the business have tried to supplement their falling incomes by getting distressed borrower's to pay them a hefty fee upfront to modify their loan.  I have seen prices form $2500 and up, usually due upfront with no guarantees of results.  Up until now, there has been little or no regulation of this activity.

I have a moral issue with charging someone a fee for something they can easily do themselves.  In the last few months i have faced this situation with past clients, friends, or simply people calling in and finding they cant refinance their way out of a bad mortgage situation.  In all cases I have explained what they need, how to get it, and then referred them back to their lender.  In the event they are having difficulty, I ask them to call me, and I will help them further.

We just got notice yesterday from the Idaho Department of Finance that anyone offering to preform a loan modification and charge a fee, is considered to be in the activity of credit counseling and therefore must be licensed as a credit counselor and must also register any and all business locations. Its about time the state got more involved on this issue.  To find out more on this subject, go to: http://finance.idaho.gov

You may also call the Depart of Finance to report illegal loan modification companies at 208-332-8000.

For home owners in distress, The Department of Finance has resources at : http://finance.idaho.gov/mortgage/foreclosureresources.aspx

I think I will be posting more on this subject with more self-help information in the future.