Foreclosure fraud is a serious problem and the criminals at large use a bevy of methods to dupe unknowing homeowners. Imposter companies will make promises of mortgage help, requiring customers to pay money up front for the services, then split town, never to be heard from again. Criminal organizations may also go straight for the house itself, asking borrowers to hand over ownership while the fraudsters assure the customer it will be theirs again a few years down the road. The latter part of the deal, however, does not occur. No matter the illegal method of conning homeowners out of their home, the outcome is generally just that – the loss of a home.

As a homeowner facing foreclosure, the Federal Trade Commission offers the following red flags people should be wary of when working with unknown companies:

If you’re looking for foreclosure prevention help, avoid any business that:

• Guarantees to stop the foreclosure process – no matter what your circumstances
• instructs you not to contact your lender, lawyer, or credit or housing counselor
• collects a fee before providing you with any services
• accepts payment only by cashier’s check or wire transfer
• encourages you to lease your home so you can buy it back over time
• tells you to make your mortgage payments directly to it, rather than your lender
• tells you to transfer your property deed or title to it
• offers to buy your house for cash at a fixed price that is not set by the housing market at the time of sale
• offers to fill out paperwork for you
• pressures you to sign paperwork you haven’t had a chance to read thoroughly or that you don’t understand.

(http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre42.shtm).

Foreclosure is an overwhelming situation to face. The good news is there are a number of credible organizations that provide loan modification or other services that can help you keep your home. As with any financial undertaking it’s imperative to take the time to do some background work and become knowledgeable about the organization and its services should you choose to use them.