created: 8/8/2007 9:01:33 PM
Last updated: 8/9/2007 6:45:18 AM

KUSA - Housing counselors in Colorado want homeowners to be extremely careful of businesses trying to make money in a growing foreclosure market in the state.

The director at Colorado's Foreclosure Hotline, Zach Urban, says foreclosure prevention services are trying to capitalize on homeowners with unnecessary and costly fees.

"Any fees that they're asking you to pay up front in any way, shape or form, to help you with the foreclosure process, if you can't pay your mortgage, how are you going to pay those types of fees? And know that nine times out of 10, you pay those fees and that's the last time you hear from them," said Urban.

Urban says any housing counseling agency approved by the U.S. Department of Housing and Urban Development would not require such payments.

"There are so many people that have come into this business because foreclosures is big money and there's a lot of money to be made in taking advantage of people," said Urban.

Urban suggests if you are going to meet with a foreclosure prevention service, schedule an appointment to see a representative in person to make sure the business is legitimate.

Also, Urban says you should ask the company over the phone if they're from Colorado. A lot of foreclosure prevention services are operating out of states like California, Florida and Ohio.

Colorado has a free Foreclosure Hotline for people having trouble making their mortgage payments. If you are calling the hotline at 1-877-601-HOPE (4673), make sure you are dialing the correct numbers.

Urban says more companies are buying phone numbers similar to the hotline in order to attract customers.

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