Bogus schemes to help troubled borrowers save their homes from foreclosure were the fastest growing source of consumer complaints in 2009, according to an annual survey conducted by the Consumer Federation of America.
The CFA survey found that 20% of state and local consumer agency respondents said bogus foreclosure rescue scams were the fastest growing complaint they received last year. Most of the complaints were related to credit and debt.
"Consumers who are desperately trying to fend off collection agencies or save their homes from foreclosure are prey to scammers who offer to help them and then take their money and run," said CFA consumer protection director Susan Grant.
CFA advises consumers to "reject unsolicited offers of help from any company except the lenders to whom you send your mortgage payments."
If borrowers can't afford their mortgage payments, they should contact their lender to work out a loan modification or a HUD-certified housing counselor, CFA says.
