Foreclosure rescue scams are hot in bubble states on clarkhoward.com

RIP-OFF ALERT: Have you seen those little signs on the side of the road that say, "Facing Foreclosure? Call Now!"

People who are in financial difficulty with their home are being hit by scamsters holding out the possibility of foreclosure rescue. But beware: They'll either strip the equity out of your home or charge you several thousand dollars in upfront fees.

The bubble states have been hit the hardest by foreclosure rescue scams. The Orlando Sentinel reports there are 40 outfits being investigated in Florida for violation of a new anti-fraud law.

Under the Foreclosure Rescue Fraud Prevention Act, fines are $10,000 per incident. If it involves a senior citizen, it's $15,000 per incident.

That's all well and good, but Clark thinks a criminal statute would have been better!

Please note that these scamsters have very professional presentations and their employees know the lingo of the industry. One outfit in the Sentinel article even went so far as to put all its employees in 3-piece suits!

If you are upside down in your house, you need to speak to a housing counselor. Visit NFCC.org to find one near you.

What others are saying

Foreclosure help
The "Produce the note" strategy works as most lenders cannot produce the original. You can get help on Consumer Warning Network as well as by a host of other sites by googling key words.
By Richard Edwards @ 11/01/09 06:06:00 AMreport abuse
Foreclosure help
Many of these companies are NOT scams. Many small investors do several of these per month and they actually do save the homeowner from foreclosure without charging a fee.
They negotiate with the bank to get the settlement price reduced, hopefully significantly. Then they either buy the house or find another buyer.
Also, the reason a legitimate company would advertize using signs by the road is because they are very effective. Hand written signs are the most effective for some reason.
By David @ 04/26/09 08:50:10 AMreport abuse
Forclosure Help
Avoid these scams like the plague! I work for a mortgage company and I have the unfortunate responsibility of collecting on severely delinquent accounts. I have dealt with too many people who almost lost everything they worked for because of con-artists promising help they can really offer. The best thing anyone can do that's faced with a crisis, is to contact the mortgage company first. Most companies have numerous tools at their disposal to help people whether it be a modification to the original loan, deferred payments, moratoriums, or even short sales. Just don't wait until the eleventh hour when it's too late.
By FYI @ 04/21/09 10:39:23 PMreport abuse
Foreclosure Scams
Also, beware of those outfits who advertise a 'LIST' of foreclosures for sale and say that you can buy a beautiful 4/2 home for $40. I was in real estate for 25 years and during that time rec'd many calls from people who subscribed to these so-called deal lists of foreclosures. By the time they receive the list, the homes are sold or the info is totally inaccurate & out-of-date. Get real! Realtors and investors would snatch up deals like that before the public got wind of it. I repeat, do not fall for any of these scams & never PAY for a list of foreclosures. The best suggestion I can give it to find a Realtor you can trust who specializes in REOs or pre-foreclosures (check out their credentials first online) and ask him or her to keep an eye out for any below market homes that meet your needs.
By Daisy @ 04/20/09 04:46:16 PMreport abuse
foreclosure scams
What about non profit 501 c3 companies
By Patricia @ 04/20/09 04:25:44 PMreport abuse
HUD certified counseling agencies
Don't limit your search for free foreclosure counseling to just Consumer Credit Counseling Services - look also for HUD certified counseling agencies in your area. HUD funded counselors have specialized in housing counseling, and not just financial or debt management plans. go to www.hud.gov
By Leigh @ 04/20/09 03:03:01 PMreport abuse
Follow CA laws
As a CA real estate broker, I can tell you that it is against the law here to get a fee for "helping" someone is foreclosure up front. Brokers are permitted if their agreement is approved by the department of real estate and that takes about a month. Attorneys may collect a retainer if the homeowner is a client. CA is cracking down on those who do not have licenses. They should do the same elsewhere and they should advertise around to warn people.
By Dick Dennis @ 04/20/09 01:57:42 PMreport abuse
Uh, why would anyone trust a business that is advertising via signs posted at highway exit ramps? Especially when it is related to financial concerns?

Doesn't this scream scam?
By Rob @ 04/20/09 11:35:30 AMreport abuse

Foreclosure help

The "Produce the note" strategy works as most lenders cannot produce the original. You can get help on Consumer Warning Network as well as by a host of other sites by googling key words.

By Richard Edwards @ 11/01/09 06:06:00 AMreport abuse

Many of these companies are NOT scams. Many small investors do several of these per month and they actually do save the homeowner from foreclosure without charging a fee.
They negotiate with the bank to get the settlement price reduced, hopefully significantly. Then they either buy the house or find another buyer.
Also, the reason a legitimate company would advertize using signs by the road is because they are very effective. Hand written signs are the most effective for some reason.

By David @ 04/26/09 08:50:10 AMreport abuse

Forclosure Help

Avoid these scams like the plague! I work for a mortgage company and I have the unfortunate responsibility of collecting on severely delinquent accounts. I have dealt with too many people who almost lost everything they worked for because of con-artists promising help they can really offer. The best thing anyone can do that's faced with a crisis, is to contact the mortgage company first. Most companies have numerous tools at their disposal to help people whether it be a modification to the original loan, deferred payments, moratoriums, or even short sales. Just don't wait until the eleventh hour when it's too late.

By FYI @ 04/21/09 10:39:23 PMreport abuse

Foreclosure Scams

Also, beware of those outfits who advertise a 'LIST' of foreclosures for sale and say that you can buy a beautiful 4/2 home for $40. I was in real estate for 25 years and during that time rec'd many calls from people who subscribed to these so-called deal lists of foreclosures. By the time they receive the list, the homes are sold or the info is totally inaccurate & out-of-date. Get real! Realtors and investors would snatch up deals like that before the public got wind of it. I repeat, do not fall for any of these scams & never PAY for a list of foreclosures. The best suggestion I can give it to find a Realtor you can trust who specializes in REOs or pre-foreclosures (check out their credentials first online) and ask him or her to keep an eye out for any below market homes that meet your needs.

By Daisy @ 04/20/09 04:46:16 PMreport abuse

foreclosure scams

What about non profit 501 c3 companies

By Patricia @ 04/20/09 04:25:44 PMreport abuse

HUD certified counseling agencies

Don't limit your search for free foreclosure counseling to just Consumer Credit Counseling Services - look also for HUD certified counseling agencies in your area. HUD funded counselors have specialized in housing counseling, and not just financial or debt management plans. go to www.hud.gov

By Leigh @ 04/20/09 03:03:01 PMreport abuse

Follow CA laws

As a CA real estate broker, I can tell you that it is against the law here to get a fee for "helping" someone is foreclosure up front. Brokers are permitted if their agreement is approved by the department of real estate and that takes about a month. Attorneys may collect a retainer if the homeowner is a client. CA is cracking down on those who do not have licenses. They should do the same elsewhere and they should advertise around to warn people.

By Dick Dennis @ 04/20/09 01:57:42 PMreport abuse

Uh, why would anyone trust a business that is advertising via signs posted at highway exit ramps? Especially when it is related to financial concerns?

Doesn't this scream scam?

By Rob @ 04/20/09 11:35:30 AMreport abuse

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Apr 17, 2009 -- Foreclosure rescue scams are hot in bubble states

What others are saying