ADVICE FROM THE FEDS

Scam artists are proliferating, attempting to make money from troubled borrowers interested in taking advantage of President Barack Obama’s foreclosure-prevention plan. The firms charge fees for what they tell borrowers will be quick and effective negotiations with banks. In most cases, the firms take the homeowners’ money – often more than $1,000 – and do nothing. The Federal Reserve recently issued this advice for people seeking to modify their mortgages:

• Work only with HUD-approved nonprofit counselors.
• Don't agree to pay a fee before you are provided with the promised service.
• Beware of people offering "guaranteed" results.
• Don't sign blank forms or documents you haven't read.

Source: The Wall Street Journal, James R. Hagerty (03/11/2009)
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