BOSTON -- As the foreclosure crisis grows so does a cottage industry of loan modification companies that promise to work with lenders and lower monthly mortgage rates. But Team 5 Investigates found the practices of many of these companies are not only unethical, they are illegal.

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Donna Warren's back injury forced her to stop working. Before too long, she fell behind on her mortgage payments. She went online and found Oceanview Investments.

"Oceanview did nothing. They took my money and did nothing," said Warren.

Donna paid Oceanview $995 to work with her lender on her behalf.

"They promised that I wouldn't have to deal with my mortgage company at all, and to ignore any calls I got from them," said Warren.

After receiving a foreclosure notice, Warren called Oceanview repeatedly and never heard back from them. Her lender informed her that Oceanview called them only once, and was informed that a loan modification would not be accepted.

"They scammed me, and I can't even get a hold of them," Warren said.

The company's Web site says they are no longer accepting clients. Florida's attorney general has launched an investigation after getting 40 complaints in less than a year.

It's not just Oceanview Investments. Team 5 Investigates has learned attorneys general across the country have either investigated, sued or shut down hundreds of companies for allegedly charging upfront fees and making false statements.

Glenn Russell is a mortgage attorney who has seen loan modification companies popping up more frequently.

"They promise we'll cut your mortgage in half, or we'll knock that interest rate down," said Russell. "They are targeting people that are the most vulnerable."

Team 5 Investigates discovered two Massachusetts companies investigated for fraud.

1-2-3-Fix My Loan cut a deal with the Connecticut attorney general by agreeing to stop charging up-front fees. There is an ongoing investigation into SKA Properties of Attleboro, Mass.

Oceanview lists their headquarters in Fort Lauderdale, Fla. When a reporter went to their office, a man who answered said the company was out of business. Oceanview did not respond to many calls from Team 5 Investigates.

Warren, in the meantime, is working directly with her lender to avoid foreclosure. As for the $995 she paid Oceanview for services not rendered, she doubts she'll ever recover it.

"Stealing, that's how I felt," said Warren. "They stole $995 from me that I really need."

The FTC recently sued several loan modification companies, but there are countless more out there. Experts suggest working directly with lenders, which is free.