- from a BBB News Release -

Rockford, IL – May 6, 2010 – With the ongoing foreclosure crisis in the U.S., many scam artists have begun to prey on those in need and those desperate to save their homes. In light of this trend, the Better Business Bureau (BBB) advises anyone facing possible foreclosure to research their options and any businesses they deal with in the process.

Due to foreclosure information being publically available, many scammers will contact the residents of the home and offer them a desperate plan that is affordable and allows them to keep their home. In many instances, the mortgage foreclosure scams will rob unknowing homeowners of their money and do nothing for them in return.

“Scams that promise to “rescue” you from foreclosure are popping up at an alarming rate nationwide,” said Dennis Horton, director of the Rockford Regional Office of the Better Business Bureau serving Chicago and Northern Illinois. “If someone offers to negotiate a loan modification for you or to stop or delay foreclosure for a fee, carefully check his or her credentials, reputation, and experience to protect yourself and your home.”

In recent months, the Better Business Bureau serving Chicago and Northern Illinois has not only heard from victims of foreclosure rescue schemes, but complaints for these companies are up 126% for the past 12 months over the previous 12 month period (34 compared to 15).

What may happen when a consumer becomes victim of a mortgage/foreclosure rescue scam? Here are two examples from northern Illinois-area consumers:

Yvette Anderson-Carter of Matteson, Ill. said, “I used them to try to avoid foreclosure on my home. I have kids that are fifteen, ten and five and my husband is 72. I have postponed surgery that I needed because of finances. We have already filed bankruptcy and needed help to get the mortgage payments down. They closed down the next week. They told me they would take care of the high payments. They gave me the phone number of a lawyer that was supposed to file the paperwork for us. The number did not work. I sent them $2500 that I did not even have—I borrowed it from my mother and uncle. I am still in foreclosure.”

Michelle Scharpf of Galena, Ill. said, “I needed help with my mortgage payments. They made promises but all that they sent was some kind of packet. The promises were just a smokescreen and we paid them $1500. I was desperate and put my house up for a quick sale since I could not keep up the $3000 mortgage payments.

The BBB asks consumers to carefully consider the following if your mortgage is in unpaid debts or you are facing foreclosure:

• Research the Company Thoroughly. Before signing any deals with a potential buyer, visit www.bbb.org for FREE reliability reports on the company and check with the Illinois Attorney General’s Office and the office of the Illinois Real Estate Commission.

• Talk to Your Lender. Ask about how to restructure or refinance your loan payment. Some foreclosure "rescuers" will offer to "negotiate" with your lender or lawyer. Know that such an offer is likely to involve a significant fee.

• Beware the Personal Approach. Some less-than-ethical businesses will stuff a handwritten note in your front door or mailbox that implies that "help" is available from someone you know or who has your interests in mind. Always research a company you are considering doing business with first with the BBB.

• Take Time Before Signing. You should never sign a contract under pressure and never sign away ownership of your property. Ask a trusted family member, your attorney or a financial professional to review any paperwork you may be asked to sign.

The U.S. Department of Housing and Urban Development (HUD) funds FREE or very low cost housing counseling nationwide. Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance. Find a HUD-approved housing counselor near you or call (800) 569-4287 or TTY (800) 877-8339 or online at www.hud.gov/foreclosure.

To research a Mortgage/Foreclosure Rescue Company or find your nearest Better Business Bureau, visit www.bbb.org

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