5 Tips To Avoid Foreclosure Scams

While we were busy posting the St George Parade of Homes last week, we didn't quite get around to telling you that it was National Consumer Protection Week and the Federal Reserve Board had released these five tips for helping consumers avoid foreclosure scams:

1. Work only with a non-profit HUD-approved counselor. For a list of certified counselors, visit www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm or call 877-HUD-1515 (877-483-1515). If the name of the organization you are working with isn't on the list, then switch to one that is.

2. Don't pay an arm and a leg. Most housing counselors provide no- or low-cost counseling services. You should not have to pay hundreds, or thousands, of dollars for assistance.

3. Be wary of "guarantees." No one can ensure you good results.

4. Know what you are signing. Don't let a counselor pressure you into signing paperwork you haven't had a chance to read thoroughly or that you don't understand.

5. If it sounds too good to be true, it probably is. If you feel you are a victim of foreclosure fraud, trust your instincts and ask for help. Report suspicious schemes to your state and local consumer protection agencies, which you can find on the Consumer Action Web site.