Southern California foreclosure attorney Jeff Barnes tells me:
Borrowers are being lured into loan mod scams where they are told that they have to be 2-3 months behind in payments before a loan mod will be considered, then when they make application, the foreclosure process has already started (and the claims have been made against the insurances, etc. because the loan is in default) and the loan mod is denied “because of the foreclosure”.
In other words, the lure of mortgage modifications are being used to trap homeowners into the foreclosure process.
And see this: