If you are behind in your mortgage payments, you may be contacted by individuals or companies that will offer to help you work out a loan modification with your lender or provide other services to you in order to help you prevent a foreclosure on your home.

Advance fees for loan modification services are now illegal in California and FREE loan modification counselling services are available.

If your lender has recorded a notice of default, do not pay an advance fee to a real estate licensee, or to any person or entity. 

There are non-profit agencies that can assist you without charging you a fee and real estate licensees who can represent you for a fee to be paid after they have completed their work. For information on non-profit housing counseling services, use the following links:

• Federal Housing Administration
• Hope Alliance Web site

If a Notice of Default has not been recorded against your property, it may be permissible for a real estate broker to assist you in working out a loan modification or otherwise negotiate a possible resolution to your problem with your lender or loan servicer but they MAY NOT ask you for payment in advance for their services.