Some companies charge as much as $2,500 to advise homeowners on mortgage options, The Washington Post reported Friday. But, "you don't need to go out and hire someone to help you," Michael Gross, a director of mortgage services for Bank of America, said.

"It is very, at times, frustrating," he said, to find homeowners paying "an upfront fee, when they could have gotten the same or better assistance free."

While foreclosure rates escalate, "we are extremely concerned about the huge proliferation of for-profit companies making a buck on these people," Laurie Maggiano, a Housing and Urban Development policy adviser told the Post.

The companies say they are making up for lenders' reluctance to help borrowers and the demand for services that has some non-profit agencies overwhelmed, the Post said.

"Non-profits are not as efficient as the regular market," said Moose Scheib, at LoanMod.com, a firm that charges $1,500 to help homeowners negotiate new terms with lenders.

"We have a lot of clients that need us," the founder of U.S. Housing Assist of Nevada, Clayton Sampson said.