Beware of debt-smashing promises from shady lenders

July 20, 2005 NEW YORK -- In recent months there have been increasing numbers of reports filed by consumers with complaints about mortgage companies taking advantage of homeowners who are in dire-straights financially.

The complaints rise from allegations that a number of companies claiming they can substantially aid consumers facing foreclosure with programs amounting to no more than mortgage rescue scams.

Homeowners are in a quasi 'state of emergency' when faced with the challenge of finances running thin to the point where there becomes inability to meet budgets (namely mortgage payments). Preying on someone in foreclosure is a particularly underhanded way to con a consumer. The reason is because a consumer faced with this type of hardship may easily be forced to do business out of sheer desperation to save what they have worked so hard-for. Henceforth, it could be said that desperation is the catalyst for vulnerability.

To better explain this variety of scam, we offer the following:
Mortgage rescue scams are promises of saving a home belonging to a consumer who is undergoing foreclosure proceedings. The catch is that the unethical lender making such promise has no more means with which to halt a foreclosure than a consumer does, and preys upon the confusion and utter-trust of the misfortunate homeowner.

Consumers who are facing a similar situation to the one above may find it good advice to:

Examine contracts tediously before signing with a company claiming to save homes from foreclosure.
Speak to a real-estate professional who has no stake in your circumstance about your situation and show he/she the collateral material, media and contracts a debt elimination company provides you before committing to a deal.