As much as Obama is trying to save the homes of Americans from going into foreclosure, the mortgage modification program can go wrong.

Basically mortgage modification works simply. Modification companies work with homeowners to lower their mortgage payments or interest rate. Foreclosure rescue operations usually work with homeowners who are nearing foreclosure or are already in it. Their sales people talk to the potential customers, have them sign papers and collect their information and documents. Then the paperwork is given to the modification officers who will negotiate with your lender in with the goal to reduce your payments or getting you out of foreclosure.

Unfortunately, unscrupulous businesses take advantage of homeowners who are about to lose their homes to foreclosure. They send out a lot of sales staffs that guarantees homeowners to get a modification or a certain loan rate. This promise is something that they may not be able to keep. This is because the rate or approval for modification is completely up to the lender.

What these operations do is mainly take the money of those homeowners without any intention of doing any of the work. They will then shut down and disappear after a few months. Some other businesses actually call and talk to the lenders, but since their modification staff are smaller than their sales staff, it often happens that they could not process the volume quickly enough to avoid foreclosures.

In order to protect yourself from these practices by foreclosure rescue companies, try and negotiate with your lender yourself. If you really need help to do it, get help from a federally certified counselor. You can do so by calling 888-995-4673 or go to their website http://www.995hope.org.

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