“Loan modification is a growth industry, with too few rules governing those selling loan mod services,” said Kurt Eggert, a law professor at the Chapman University School of Law.

Borrowers can protect themselves several ways. Start by checking with the Better Business Bureau and state attorneys-general consumer-protection offices for complaints against the firms. Also ask any potential foreclosure-prevention counselor how many cases they’ve successfully completed and what kinds of loans are winning workouts.

“These companies don’t seem very transparent about their credentials. If you’re not getting answers you trust, look elsewhere,” said Marietta Rodriguez, director of homeowner programs for NeighborWorks, a community development group

 
"I suggest that at risk borrowers ask alot of questions, ask for proof of completed modifications, get copies of some of the modifications the firm has completed, make sure they are current (not old ones), ask for references (anyone who has had a successful modification would be more than happy to vouch for the company." said Dan Harris, CEO of The Home Retention Group.

If the company you are speaking with is evasive, vague and doesn't seem to want to answer your questions, then move on, lest you face the prospect of losing your home.