I was watching the news late last night and they had a topic that caught my eye. I usually don't watch the news that late, but I had to make the effort to hear what they had to say.

It has been reported and is predicted by the end of 2007 (not too much to go) that there will be over 2 million foreclosures in the United States. This is 63% higher than the following year and is projected to rise again in 2008.

Because of the tragedy, it has swarm those out there that like to attack the weak or those who are in a weak state and scam them from even more money! It is called Foreclosure Rescue Companies. These scam artists are obtaining the information on homeowners who are in jeopardy of loosing their homes or that have already fallen into the foreclosure process.  They send them a letter stating they are there to rescue the homeowners from the foreclosure by several methods.

• They offer to negotiate with the lender/bank to reduce the monthly payment
• They offer to negotiate to have the arrears added to the back of the loan or to balloon a small portion to make it affordable to the homeowner
• They offer to negotiate to lower the current interest rate or to remove the adjustable rate to a fix rate

While offering these services, they ask for a small fee which must be paid up front before they will work their magic to stop the bank from taking the house. In desperation, homeowners are sending $1,500 to these rescue companies to work on their behalf.

Several people  have paid the money and never heard from the company again, some have paid the money and the company disconnects their phone number and others can not deliver ANY of the promises and make no attempt to provide the service they advertised.

Most homeowners who are in this boat (and it is a big boat) do not realize that you have to have written permission and consent from the homeowner to discuss the loan. These desperate homeowners are being taken in and what little money they have to work with to save their home is being scammed away by these predators.Several people they interviewed fell for this scam and had to file Bankruptcy to at least have a fair shake of saving their homes.

My advice is simple- if it sounds too good to be true- then it is. If you have found yourself in this situation, here is some good solid advice;

• Do not ignore the bank. If you are starting to fall behind, make the call to the bank and work out a payment arrangement to prevent foreclosure. Most will talk to you and make arrangements. If you ignore the bills and make no attempt, then the banks will move forward.
• Talk to an Attorney. There are Attorneys out there that can also help you with your options.
• Speak to a work out specialist. This particular Real Estate Agent knows how to work with the banks when you have fallen behind and they can negotiate a quick sale. It is better to sell than to foreclose if that is the only option left for you.

Check out your options, be aware of those who send you the letters in the mail with promises of magic to make it all go away.