Scam artists have found a new field in the Obama foreclosure-prevention plan. Attempting to make a grand per customer, these firms charge fees for what they call "quick and effective negotiations" with banks. In most cases, the firms will take your money, then do nothing. The Federal Reserve issued advice for people seeking to modify their mortgages:
- Work only with HUD-approved nonprofit counselors.
- 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.
