Unfortunately there are people who look to prey on people in financially vulnerable situations like those facing foreclosure. There are two main types of scams to be on the lookout for:

Equity skimming. This is when a “buyer” approaches you, offering to get you out of financial trouble by promising to pay off your mortgage or give you a sum of money when the property is sold. They may suggest you move out quickly and deed the property (legally sign it over) to him or her. The buyer then collects rent on your property, doesn’t make any mortgage payments, and allows the lender to foreclose. You may still be responsible for the debt.

Phony counseling agencies. Make sure you’re working with a legitimate counseling agency if you choose to use one. You don’t need to pay for many services such as negotiating a new payment plan with your lender, or arranging a pre-foreclosure sale. Don’t pay for, or sign, anything before knowing if the company/agency is legitimate. See the “Getting Professional Help.”