Home Loan Modification? Thanks, but no thanks

The economy is bad enough and there's just about no one here in Vegas that doesn't seem to be underwater with their home mortgage. Which means only one thing: it provides the perfect opportunity for scammers, and home loan modification seems to be the scam of choice these days.

Just the other day there was a local story here of a Las Vegas mortgage broker charged with theft regarding a home loan modification gone awry. Here's the typical sales-pitch:

"Do you owe more on your mortgage than your home is currently worth?" or "Are you on the verge or in foreclosure?

Talk about a ripe market! But here's the real question: Does home loan modification really even work?... or is it just a short-term answer to a long-term problem? Quite frankly, I don't know the answer to that one. Most will tell you to check the Better Busines Bureau before moving ahead with a company offering loan modification, but even that doesn't insure you that you're dealing with legit people. After all, is there an organization out there that has "jumped the shark" more than the BBB?

Maybe the solution is to contact a reputable short sales specialist instead. Or, what I would do is try to find someone out there that's actually done a successful loan modification to their benefit and find out from them what company they used. Can't find one? Well, maybe that tells you something too...