Probably one of the most frightening experiences you as a homeowner can face is losing your home to foreclosure. If you can’t keep up with your mortgage payments, you need to be informed and proactive.

Before contacting a “loan modification” company, first contact your lender. An attorney can also tell you what your options might be through the foreclosure process. In Florida, low-income people can find free legal services at findlegalhelp.org. You can also contact a HUD financial advisor. His number is (800) 569-4287. Their website is hud.gov. A good nonprofit housing agency to contact is the Homeownership Preservation Foundation at (888) 995-4673. Their website is 995hope.org

If you decide to use a foreclosure rescue business or loan modification company, you need to know who you are dealing with. Before giving them money or any personal information, research the company and check its history of complaints.

You can check with both your state Consumer Services and your state Attorney General. In Florida you can contact the Florida Department of Agriculture and Consumer Services or the Florida Attorney General’s Office.

You need to understand exactly what you are signing. Get any verbal promises made to you in writing. Keep copies of all the documents you sign. Any promise or agreement you make about your home is generally not legally binding unless it is in writing.

The Florida Statute on Loan Modification which became effective January 1, 2010, states that any business or person providing loan modification services within the state of Florida must have a current license from the Florida Office of Financial Regulation. . This will help strengthen the Foreclosure Rescue Fraud Prevention Act passed by the Florida Legislature in 2008.

The Florida Foreclosure Rescue Fraud Prevention Act protects homeowners from fraudulent companies or individuals who offer or provide loan modification services. It protects consumers in several ways.

Any business/individual offering or providing loan modification services must:

1. Have a written agreement for loan modification services with the borrower before beginning the modification process.

2. Explain each modified term to the borrower and have their written consent before beginning.

3. Follow the guidelines established by statute that describe what must be in the written agreement for a loan modification.

4. Give the borrower a copy of the agreement for review one business day before the borrower signs the agreement.

The owner has the right to cancel the written agreement without penalty or obligation; provided that the cancellation is made within three business days following the signing of the contract.

There are also protections for the borrower in charging fees up front from the borrower before completing all the services contained in the contract.

For additional information, you may contact the Florida Department of Agriculture and Consumer Services. Their website is at 800helpfla.com. The Florida Consumer Assistance Center will also be able to help you or tell you where to go for help. Callers from Florida can call 1-800-435-7352. If you are calling from outside of Florida, you can call 850-488-2221. If you need to make your call in Spanish, the number to call is 1-800-352-9832.