What are red flags of a loan modification scam?

Red flags of a loan modification scam include: companies asking for upfront fees before helping you (illegal in many states); being told to stop communicating with your mortgage servicer or lender; being asked to make mortgage payments to a third party instead of your lender; pressure to sign a power of attorney or other documents giving away control of your property; and guarantees of success — no one can guarantee your lender will approve a modification. Legitimate loan modification help is available free through HUD-approved housing counselors and through your lender's own hardship programs. Report suspicious companies to your state attorney general.