A type of fraud becoming more common is foreclosure protection. Not surprisingly, no one is being "protected," particularly the homeowner. Ogden noted so called "foreclosure specialists" prey on desperate homeowners who are behind on their mortgages and fearful of losing their houses. One of the more common scenarios is the "specialist" promises to work out the loan by buying the home and renting it back to the buyer.
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"The fraudster accepts 'rent' payments, but does not pay the loan," he noted.
A sure-fire sign of trouble? If a foreclosure prevention company requires upfront fees to help negotiate on behalf of the homeowner with his/her lender, Ogden said.
