Loan Modification - Should You Pay For The Service?

I received a phone call today asking for assistance with an unresponsive loan modification company hired for a $1,600.00 down payment.  The remainder of the $1,600.00 balance was due at some point to be determined when caller had seen results from the loan modification company--i.e., October scheduled foreclosure sale stopped.  The house is scheduled to be sold on the steps of the Fulton County Courthouse on Tuesday. 

Today, the loan modification company says the foreclosure has been removed from Tuesday's calendar, and demanded the remaining balance be paid in full.  Caller has been unable to verify the foreclosure sale was removed from Tuesday's calendar, or rescheduled, and is refusing to pay the remaining balance until asserted results are verified.

After researching this same loan modification company on the internet, I found they had numerous complaints published by consumers with allegations of no foreclosure prevention assistance, even after the company was paid in full.  Florida's Attorney General has received several complaints about this same loan modification company, but has not started a formal investigation.

I'm always been skeptical of paying for loan modification services, when there are plenty of non-profit companies that will assist you for free.  For example, consider Hope Now, NACA, Atlanta Legal Aid, and other smaller organizations based in some of Atlanta's neighborhoods.

If you are considering applying for a loan modification, please be skeptical of any company that is charging you for a service that you can do, or can be done by a non-profit organization.  If you insist on paying for the modification service, verify their record of service with Georgia's Attorney General, the Bettter Business Bureau, Georgia's Secretary of State, and any other service you can find.