The Miami area is full of companies that are pushing promises of beating foreclosure by refinancing loans.  It has recently become an initiative in the area to ensure that these companies are in fact legitimate and are not adding to the already brutal situation that the local market finds itself in.

The Obama administration is leading the charge against “foreclosure rescue companies” that are preying on situations where consumers are doing anything possible to have a chance at not foreclosing a property.  Behind this effort, which combines the efforts of state and federal government, it is a goal to take down these problematic loan modification firms.

Reports have been pouring in to Miami-Dade police from homeowners alleging they were ripped off by a loan modification company.

The area is booming with law firms that are now specializing in foreclosure prevention and defense.  It is common practice for a loan modification scam to charge homeowners thousands of dollars in upfront fees and often take off with the money before providing aid.  Homeowners in Miami should also beware of such companies that resemble a nonprofit or government agency.  The Federal Trade Commission has been putting in effort to make homeowners aware of potential red flags to hopefully result in fewer situations where a bad loan is lent.