If you're facing a foreclosure on your home, you may be tempted to use a a so-called foreclosure rescue company. Such companies claim to negotiate with lenders on your behalf to modify your loan so that you can keep your house. Unfortunately, many foreclosure rescue companies are fly-by-night operations that promise much more than they can deliver. They take up-front money from consumers desperate to keep their homes, but are really nothing more than a scam.

Regulators and law enforcement agencies around the country have fielded a slew of complaints against foreclosure rescue companies, many of which take a large fee up-front and never deliver the services they advertise. In addition, many such companies use dishonest or fraudulent practices when they do try to negotiate on consumers' behalf.

Some question the value of foreclosure rescue altogether. California State Attorney General Jerry Brown, who has tried to shut down dishonest operators, says, " This is a very big scam. They're all over the place, and as soon as you get one, they migrate to somewhere else."

Brown has also said, "The loan modification industry is teeming with confidence men and charlatans, who rip off desperate homeowners facing foreclosure. Despite firm promises and money-back guarantees, these scam artists pocketed thousands of dollars from each victim and didn't provide an ounce of relief."

If you are facing foreclosure, and find it frustrating or impossible to deal with the lender directly yourself, you can go to a public interest counseling agency to help you through the process. The U.S. Department of Housing and Urban Development has a list of approved housing counseling agencies that you can contact. Look for counselors that list "Mortgage Delinquency and Default Resolution" as among their services.

If you do deal with a private foreclosure rescue company, the California Attorney General's office has released a list of tips to help avoid getting scammed.

First, never pay an up-front fee to a foreclosure rescue company. They are prohibited by law from collecting a fee before they have performed the promised services.

Second, always respond to letters from your loan servicing company. Dealing directly with the lender is always the best way to avoid foreclosure.

Third, never transfer title of your house to the foreclosure rescue company. This is potentially the biggest and most dangerous scam of all. There are some dangerous crooks out there. Don't get scammed!

Fourth, don't make mortgage payments to anyone but your lender. Unscrupulous crooks will promise to act as intermediaries between you and your servicer, but will take the money themselves and run.

Finally, read very carfully any documents before signing them. Scammers will try to trick you into signing over the title of your house to them. Don't do it.

Foreclosure rescue is a fertile ground for fraud because people who are about to lose their houses are often desperate enough to try anything. Reading news accounts of the business, one is left with the impression that there are no legitimate foreclosure rescue companies at all.

Some of the fraudulent practices that authorities have uncovered in the industry include taking up-front fees and never performing any work at all, stealing title from unwary homeowners, forging documents, and making promises they know can't be kept.

Instead of dealing with a scammy foreclosure rescue company, you should first get together all your financial information, including income, expenses, and any liquid cash, and call your lending servicer with that information to ask for a "work-out". Tell them that you are unable to meet your current loan payment and ask if you can work out a new payment plan.

Don't expect a quick resolution or easy solution to your problem. Persistence is the key in dealing with lenders. Be organized and go through the steps required by your lender to achieve a loan modification. If you find that the financial details are over your head, contact an approved housing counseling agency to help you through the process.

Whether you're dealing with the servicer on your own or through an accredited agency, you should gather together your most recent loan statements, any communications you've had from your lender, and any official notices you've received from courts or local sheriffs.