Possible ban on upfront fees for loan modifications coming

There's no shortage of companies promising to save troubled homeowners from foreclosure through loan modifications.  Many of them charging an upfront fee ranging from 1000-3000 dollars.  Once the fee is paid they do little or nothing at all on the loan modification.

Now the government is considering banning companies from charging upfront loan modification fees altogether. 

In my opinion they should have done this a long time ago.  It would have saved troubled homeowners asking for loan modifications a lot of trouble and despair.

It's hard to know in a time of desperation what you should do.  It makes it easy for a smooth talking salesman to peddle their loan modifications and take advantage of people in a time of need.

The top three things I always advise my clients seeking a loan modification to do go in this order:

1. Call your lender!

2. Call your lender!

3. Call your lender!

Your best chance at successfully achieving a loan modification is going to be personally contacting your lender.  The point I'm trying to make about telling you to call them over and over is because that's in all likelihood going to be the reality. 

Last but not least, NEVER, NEVER, NEVER, pay an up front fee to anyone offering to do a loan modification.