While mortgages can be burdensome, there are many good debt management and legitimate ways to avoid foreclosure and other credit problems related to home loans. Banks, mortgage companies, and other licensed lenders have plenty of programs specifically designed to help consumers manage their finances or explore ways to find flexibility in their payment plans. Sometimes, refinancing to a different interest rate or payment schedule will work. Other homeowners find answers by selling their property, leasing it, or borrowing against their home equity. Many consumers take out debt consolidation loans in order to pay off their high-interest balances with a more manageable type of loan. There are also lenders who specialize in so-called "bad debt mortgages," providing money to people with bad credit histories or other financial obstacles in their path.

Mortgage loan scams

The first line of defensive debt management for homeowners facing mortgage trouble is to avoid illegal scams that target innocent borrowers.

Scams may involve:

• Sophisticated and professional-looking presentations
• Glossy brochures, fancy web sites, and well-dressed, knowledgeable sales people
• Programs to pay off your entire mortgage
• Special loans that convert bad debts into positive cash flow

Most scams involve:

• Telling you not to talk to your lender
• A payment of cash
• The signing of legal documents
• Perpetrators who vanish with your assets, leaving you in worse shape than before they arrived on the scene

The Federal Bureau of Investigation is currently searching for a young couple who has bilked homeowners out of millions of dollars in mortgage scams around the U.S. They continue to elude authorities. These cons are pros. If anyone approaches you with a debt consolidation or bad credit mortgage plan, immediately call your mortgage company or loan officer. If the people are legitimate, your own lender can work with them to expedite the process of paying off debts. If the offer is too good to be true, chances are it's not. Notify your lender, who can alert the police and protect you-and your neighbors-from a devastating experience.