PHOENIX -- Mortgage fraud is on the rise, and the latest cases often involve loan modification, according to the FBI.

Loan modification involves reducing the principal amount owed by negotiating with the mortgage company.

Julie Halferty, a supervisory special agent in the Phoenix office, said she had never seen as many mortgage fraud cases as she has in the past few months.

"If it's too good to be true -- it's too good to be true," Halferty said.

Valley resident Byron Kyles believes he fell victim to such a scam.

Last year, he fell behind on his mortgage, and he had two choices: walk away from his home or work something out with his mortgage company.

"Our concern was lowering our payment so we could continue to meet it -- be on time and be a responsible homeowner," he said.

Kyles contacted the mortgage company as well as a loan modification specialist. He paid the specialist $4,500, but he said his own efforts are what got the loan modified.

"In my opinion, they did nothing to help us," Kyles said. "The surely did not do $4,500 worth of work to help us."

Halferty said homeowners can talk to mortgage companies about modifying the mortgage themselves, like Kyles.

"(Specialists) don't have any sort of special magic with your bank that you don't have yourself," she said.

Not all companies that offer loan modification programs are scamming customers; however, a homeowner will either qualify or not qualify for a modification.

Homeowners can find out if they qualify by contacting the mortgage company's loss mitigation department.