Foreclosure scam artists

The rise in homeowners facing foreclosure has fueled an increase in the number of scam artists trying to make a buck off of their misfortune, according to the National Foundation for Credit Counseling.
These scam artists usually promise to help people stay in their homes. But those offering the bogus foreclosure rescues are the ones who end up ahead, by generating a quick profit for themselves or stripping away the value of the home, the foundation said in a news release.
"Scam artists can evict a family from their own home and then sell it on the open market before the homeowner has any idea of what is going on," said Gail Cunningham, spokeswoman for the foundation. The NFCC's Homeowner Crisis Resource Center Web site has a page dedicated to educating people on how to recognize and stay away from such scams.
But Freddie Mac took a different approach to getting the message across. It posted a two-minute YouTube video that demonstrates how these con artists can dupe unsuspecting, distressed homeowners. View the Freddie Mac video.
"With fraud reports on the rise, we are using every communication channel out there to warn borrowers about these fraudsters and urge borrowers to call their lenders when they fall behind on their mortgage," said Ingrid Beckles, vice president of servicing and asset management for Freddie Mac.
Read more real estate news in this week's pages, including our year-end look at housing and coverage of how the newly signed energy bill will help homeowners. Also, take a look at this week's Realty Q&A about how to finance a Christmas tree farm.
With the number of foreclosures up in some parts of the country, there are bound to be people who take advantage. Distressed homeowners need to guard themselves and make sure they don't make a dire situation even worse.