With many sub-prime mortgages with adjustable rates resetting at significantly higher interest rates many hard working Arizonians are finding it increasingly difficult to make their monthly mortgage payment.  As the mortgage payment due date grows closer many Arizona home owners become desperate to save their homes and in their panic they reach out to any source that seems to offer a way out.

Homeowners listen to news reports which state that there are government programs designed to help people like them but when they contact their lender they get the run around. When it appears that the government isn't helping and the lender doesn't care there is despair and into that void arrives an advertisement for the “loan modification specialist.” These advertisers piggy back off of the very really potential that lenders might be willing to modify their loan by lowering their interest rates, place missed payments onto the back end of the loan, or even lower the principle balance due.

Arizona homeowners must be aware that even though legitimate programs exist which help lenders modify their loans, the unscrupulous loan modification specialist usually ask for money upfront then do little or no work on the case. Many loan modification specialists tell the homeowner to stop making their mortgage payments and then homeowner usually falls further behind because the money that should have been going towards mortgage payments was instead paid to the specialist. It is only when it is too late that the homeowner finds out that a foreclosure was started instead of a loan modification.

Arizona homeowners must be aware that just because a bankruptcy attorney's name is used in the loan modification advertising this does not insure that the loan modification will be properly handled. Unfortunately, bankruptcy lawyers have been lured into "partnerships" with loan modification scammers in return for what appears to be an easy pay day. Under this scenario the bankruptcy attorney places his/her name on the advertisement or even onto the loan modification contract. The problem arises when the loan specialist does all of the work and the bankruptcy lawyer does nothing. It is probable that the type of actions described above would constitute a violation of the Arizona Ethic Rules which bar fee sharing with non-attorneys, and/or allowing the unauthorized practice of law.