Signs of a foreclosure scam

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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:

A SPECIAL REPORT

Too many new houses. Too many investors. Too many exotic loans. Read about the continuing impact of how this lethal mix caused the housing market, and economy, to crash.

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.