As if it wasn't frustrating enough for today's prospective mortgage borrowers to be turned down. Some are being taken advantage of by companies that promise to help them navigate today's tougher lending climate, but instead take the fee and run, according to The Wall Street Journal.

Here's an excerpt from the story:

Federal and state authorities say the nation's housing slump and credit squeeze are resulting in a spike in reports of companies preying on frustrated borrowers who are having difficulty securing commercial loans through conventional sources.

The Federal Bureau of Investigation, the Federal Deposit Insurance Corp. and state regulators across the country say they have seen an increase in "advance fee" loan schemes in which companies charge would-be borrowers upfront fees but never seriously try to find financing for their projects.

The FBI says it recently received "several hundred" complaints about advance-fee loan schemes. "We saw some in 2007, but not nearly to the level we're seeing this year," says Cathy Milhoan, an FBI spokeswoman in Washington. On its Web site, the agency includes "advance fee scheme" in a warning to the public about "common fraud schemes."

"Clever con artists will offer to find financing arrangements for their clients who pay a 'finder's fee' in advance," the Web site states. "Victims often learn that they are ineligible for financing only after they have paid the 'finder.'"

The FDIC says consumers should be wary of companies that request fees via a wire system, and of upfront fees, saying that "loan fees are normally paid to a business after the loan has been approved."

Click here to read what the FBI has to say about advance fee schemes and how to avoid them.