"Rescue" Scams Add to Homeowner Woes

Crooks, hustlers, con artists...call them what you will, but a new breed of opportunists have crawled out of the woodwork to steal what little cash, troubled home owners may still have left.

Cases have emerged of persons posing as "foreclosure-rescue" companies who claim to be able to help beleaguered homeowners stave off the threat of foreclosure for a one-off fee, normally ranging between $1,000 and $3,000. For those, desperate enough to fall for the scam it means the loss of any liquid capital they had remaining.

Some foreclosure-rescue companies are legit, but many others are not, so being able to spot the difference has been challenging for some obviously disgruntled home owners.

"I got calls all day from people saying they could save my home," said Huston Julian, a 54 year old from Eastpointe, Michigan who almost fell victim to one such scam

Banks are usually required to file default and foreclosure notices with a local court or the county clerk's office. Such filings quickly become part of the "public record" that everyone can view, including scam artists looking for new prey. This year, the FBI says it expects 60,000 Suspicious Activity Reports related to mortgage fraud, up from 47,000 in 2007 and just 7,000 in 2003.

For advice on coping with the subprime fallout, contact the federally approved Hope Now Alliance, a group comprised of home owner-counseling agencies, banks and other financial institutions. You can call, toll-free on (888) 995-4673, or visit www.hopenow.com. Alternatively, you could also contact your local financial adviser or a counseling agency near you for further advice.