Field day for foreclosure and loan mod scams?

They call themselves loan modification consultants, negotiators or specialists. Some are legitimate, but many are simple con artists looking for desperate marks facing foreclosure amid the wreckage of the nation’s housing market. It’s a good business, too, since in most states, there’s not much of a chance they’ll ever end up before a judge facing any time in jail.

President Barack Obama’s foreclosure-prevention plan, announced last week, is designed to give several million troubled borrowers another chance to lower their mortgage payments. But government officials and counseling agencies warn that it also presents a golden opportunity for firms to fleece unsuspecting borrowers. Over the past few years, there has been a proliferation of firms that charge fees for what they promise will be quick results in negotiating with banks to get easier loan terms. In many cases, the firms take the homeowner’s money but never deliver the services promised. Even when the firms do deliver what they promise, they charge fees -- often more than $1,000 -- for services borrowers can receive free.

The Federal Reserve recently issued advice for people seeking to modify their mortgage: -- Work only with HUD-approved nonprofit counselors. (See http://www.hud.gov/.)-- Don’t agree to pay a fee before you are provided with the promised service.-- Beware of people offering ‘guaranteed’ results.-- Don’t sign blank forms or documents you haven’t read.