Treasury Secretary Timothy Geithner has joined hands with several other government representatives in order to crack down on those taking advantage of homeowners that are looking for help to have their loans modified. On February 18th President Barack Obama passed a bill that would allow homeowners underwater to get refinanced for a low interest rate or have their loans modified for a lower principal amount.

Those that prey on the homeowners that are about to foreclose or are having a hard time keeping up with their mortgage payments will be targeted and shut down. There was no word whether these scammers will be prosecuted, however. A red flag to watch for is when the companies that claim to help modify or prevent foreclosures say that they will need money upfront in order to begin the process. There are many non-profit organizations out there that are willing to help.

The government is trying to deter fraudulent activities and utilize financial agencies to spot these frauds. They want to shut them down as soon as possible since they are part of a large problem that seems to continue to get worse. For more information on what kind of programs are out there and what to look for when receiving help search www.homeaffordable.gov in order to learn more about avoiding scamming companies and individuals.