Kern County's troubled housing market has given rise to a new industry targeting people who are in danger of losing their homes.

It's called loan modification. Companies often claim they can cut your mortgage payment and keep your house from going into foreclosure. But they do it at a price, usually in the thousands.

"It's hard knowing you might lose your home," says Holly Castleberry.

Castleberry and her husband have lived in their east Bakersfield home for 10 years. They pulled money to start a trucking business. But when the price of gas soared to $4 a gallon, the business folded and the Castleberry's were stuck with a mortgage they could no longer afford.

Castleberry says she got a call from a Roseville-based Short Refi. She says the representative said they could cut her monthly payment from $1,100 to $700.

She says the company also told her to stop making payments to her lender and instead send the payments to Short Refi. In total, she sent $2,700 over three months.

Castleberry says Short Refi finally worked out a deal that raised her monthly payment to $1,400. She feels like they did "nothing" to help her and have refused to refund her $2,700.

Consumer credit counselor Katy Hudson said companies like Short Refi have become more popular as the housing market has struggled. She says not all of the companies are operating a scam, but they often charge thousands of dollars for services you could do yourself.

If your struggling to make your payments, Hudson recommends calling the lender yourself to work out a deal.