Signs of a foreclosure scam

If you are in danger of losing your home to foreclosure, you may be a prime target for a foreclosure rescue scheme.

The Stanislaus County district attorney's office has issued these tips to help residents avoid scams in which a criminal poses as a financial expert and promises to stop or postpone a foreclosure. Often, the homeowner loses the home and fees paid to the so-called expert.

If you see these warning signs, the deal may be a scam:

Homeowners are asked to pay fees in advance.

Homeowners are told to stop making mortgage payments so the rescue company can make smaller payments.

Homeowners must transfer ownership or a portion of ownership of their property to a third party.

Homeowners are asked to give power of attorney to a third party.

To report suspicious business practices, call the Federal Fraud Hotline at 800-437-2838, the California attorney general's office at 866-275-2677, or the real estate fraud unit in the district attorney's office at 525-5550. Complaints to local prosecutors also may be filed at www.stanislaus-da.org.

Homeowners who are in default should contact their lenders; many are willing to work with homeowners to avoid foreclosure.

Free help is available from three agencies certified by the U.S. Department of Housing and Urban Development: ByDesign Financial Solutions at 800-750-2227, Community Housing & Shelter at 574-1151 and Project Sentinel at 236-1577.

For more on the nation's housing crisis, go to www.modbee.com/housing.