Oregon AG warns about fees on loan offers

The Oregon attorney general's office is warning homeowners facing foreclosure about offers to modify their mortgage loan for a fee.

State officials say some companies charge fees for services that homeowners can get for free by visiting a nonprofit counselor or by talking directly with their lender.

Loan modification companies have been targeting homeowners in Oregon through fliers, direct mail and phone calls.

Typically, the companies charge a fee to negotiate a change in the borrower's loan, such as deferred payments.

But most homeowners can get the same result for no charge from a nonprofit counselor or by dealing directly with their lender.