With very little fanfare, something recently changed here on KeepMyHouse.com. If you were paying close attention, you may have noticed on Tuesday, March 31, I removed all advertisements and sponsorship images & links for a California-based law firm called Federal Loan Modification Law Center, LLP (FLM).

As some of you know, I previously agreed to serve as FLM’s national spokesperson. I did so because I believe homeowners facing foreclosure need as much help as possible in saving their homes or getting out from underneath a home loan they no longer can afford, and I had reasonable assurances from FLM that they ran a very responsive operation.

As part of my engagement with FLM, my team and I conducted a detailed programmatic and operational audit of FLM’s business. The resulting 52-page report, which we turned over to FLM’s owners and management team in late December of 2008, contained numerous observations and recommendations for improving operations. Recently, however, it came to my attention that FLM ignored many of my recommendations, and as a result, I decided I could no longer support FLM. Accordingly, on Tuesday, March 31, 2009, I informed FLM of my intention to end our relationship and I removed all references to the company here on KeepMyHouse.com and other websites I manage across the Internet.

Earlier today, the Federal Trade Commission (FTC) filed a “enforcement action” against FLM, claiming among other things that FLM used “deceptive tactics to market their mortgage modification and home foreclosure relief services.” To learn more about the FTC’s actions, read “Federal and State Agencies Crack Down on Mortgage Modification and Foreclosure Rescue Scams.”

For my part, I want everyone reading this blog entry to know that I do not endorse FLM and FLM’s owners or staff never influenced any of the content found here on KeepMyHouse.com. KeepMyHouse.com continues to be an unbiased resource you can trust for honest and timely information about loan modifications and more.

Ralph R. Roberts, GRI, CRS Award-Winning REALTOR® and Author Loan Modification For Dummies (avail. Summer 2009)

One of the best ways to find a reputable loan modification company or specialist is to obtain referrals from people you already know and trust who’ve hired someone to represent them. Unfortunately, that can leave you with a very shallow pool to draw from. Here are some other suggestions on how to track down reputable, qualified candidates:

• Contact local real estate brokers. They should know attorneys in the area who are experienced in negotiating with mortgage lenders, including foreclosure, bankruptcy, and loan modification attorneys.
• Call the local branch of your state Bar Association. They can direct you to an attorney who deals with situations such as the one you’re facing right now.
• Ask at your bank if you feel comfortable doing so. You may not be comfortable revealing your current financial woes to your friendly neighborhood bank, but if you do, the bank’s manager may be able to offer a valuable reference.
• Ask the leading foreclosure attorney in your area – the one who forecloses for lenders. Many of these firms are familiar with companies that are negotiating loan modifications with the attorney’s client-lenders. They may or may not give you a name, but it doesn’t hurt to ask.

Once you’ve done your homework, start vetting the three most promising looking prospects. Call the company or individual, tell them you need assistance negotiating a loan modification with your lender, and ask what they can do for you. While it’s okay to talk with a representative to see if you would feel comfortable working with them, don’t give out any sensitive information over the phone, such as your mortgage identification number, social security or driver’s license number, or credit card information, until you are completely comfortable working with the service.

Check back tomorrow, when I’ll be sharing the 10 most important questions to ask a loan modification company or specialist before signing on the dotted line.

Ralph R. Roberts, GRI, CRS Award-Winning REALTOR® and Author Loan Modification For Dummies (avail. Summer 2009)