The scams involving foreclosure companies have been increasing during the past year, according to the Council of Better Business Bureaus. Numerous cases nationwide point to the same type of scam when a foreclosure company claiming to solve the client’s problems, cashes the check without providing any type of results. The victims, who are mostly elderly, immigrants, or low-income families are promised to save the home by taking title, said an investigator for the Deerfield Beach, Florida law firm, who was convicted and served time for mortgage fraud. This type of foreclosure rescue scam,
called “equity stripping” is the most common. According to the investigator, "the scammer promises to save the home by taking title, renting it to the owner and selling it back sometime later. Instead, he strips the equity by charging excessive fees, doing phony renovations and not making the mortgage payments." Investigators urge people not to trust firms or individuals offering their unsolicited services.

Source:
Mortgage mess fallout: foreclosure rescue scams - Aug. 24, 2007

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