Gov. David Paterson said Wednesday he wants to crack down on businesses that take advantage of homeowners facing foreclosure by issuing new regulations.

Paterson wants to ban the collection of upfront fees by loan modification companies and require such businesses to register with the state.

Pam Bellosbirito, of Centereach, says she was very close to losing her home to foreclosure so she went to American Modification Agency for help. She says the company assured her she would be able to stay in her home. Bellosbirito says she paid $4,000 upfront, but that AMA failed to deliver or get any money back.

Eileen Anderson, of Community Development Corporation of Long Island, says many not-for-profit organizations like hers provide the same services private companies do. She says CDC helps homeowners draft and send out loan renegotiation paperwork and helps them talk to lenders to devise outcomes.

Bellosbirito says she was able to work out a deal with her bank with the help of CDC. She?s suing AMA for her money back.

U.S. Department of Housing and Urban DevelopmentCommunity Development Corporation of Long Island