The California Department of Real Estate (DRE) has issued a fraud warning regarding loan modification scams. Before deciding whether or not to pursue a loan modification using outside assistance, I would recommend that you check out the DRE site below to be sure your service provider is not listed on the scam list.
 
The alert is available in both English and Spanish.  Last July, the DRE had fewer than 10 complaints involving loan modification companies; today the department has 750 pending investigations. In addition, since last October, the DRE has filed more than 200 Desist and Refrain Orders. A list of the companies and persons the DRE has filed an action against can be viewed at