Mortgage and Foreclosure Scams on the Rise

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The Consumer Federation of American (CFA), a nonprofit consumer advocacy organization, compiles a list each year of the most common consumer complaints.In 2008, mortgage and foreclosure-related scams made it into the top 10 of the most common complaints.

The Consumer Federation of American also expects mortgage and foreclosure scams to top the list in 2009, according to

The CFA report describes foreclosure scams as some of the “worst complaints” put forward by consumers. One such company, Foreclosure Solutions, promised distressed homeowners in Ohio that it could help save their homes from foreclosure. The homeowners were charged fees up to $1,300, and the company did absolutely nothing to prevent them from losing their homes. As a result, many “customers” of Foreclosure Solutions ended up in foreclosure.

To avoid falling victim to a foreclosure rescue scam, the Consumer Federation of America recommends calling the Hope Now Alliance at (888) 895-HOPE to find a nonprofit housing agency that can counsel you on foreclosure prevention. As always, your first call when facing financial hardship should be to your lender.

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