The Problem of Loan Modification Assistance Providers

Clients and acquaintances often ask me if I can refer them to someone who can help get a loan modification. Unfortunately, I can't. I don't know of anyone who is going to do any better of a job than the client could do working directly with the lender. So I usually suggest that clients try to negotiate directly with the lender to obtain a loan modification. Almost all loan modifications now are done through the HAMP program, so I put together an article on the HAMP program that gives a basic framework of how that program works.
Recently, I noticed a press release from the State Bar identifying various loan modifications that were under investigation. (The release is dated 9/18/09.) I don't know what the current status of this investigation is, but I would highly suggest that individuals in California considering using a loan modification law firm contact the California State Bar to see if there have been any complaints regarding the firm they propose to use.