Mortgage Foreclosure Scams on the Rise Colorado

One of Three States Hardest Hit, Says BBB Colorado homeowners facing mortgage foreclosure are being scammed by foreclosure "rescue" companies promising to save their house but only take their money, warns the BBB. The BBB has heard from victims of foreclosure rescue schemes in almost all 50 states. Not surprisingly, states with the highest foreclosure rates-such as Colorado, Georgia and Ohio--have an exceptionally high number of complaints for companies offering foreclosure rescue. "According to estimates, as many as 1.7 million homeowners could lose their house to foreclosure in the next couple of years," said Pamela King, president/CEO of the Mountain States BBB. "These people will be in the desperate position of trying to save their home and they'll look for someone to trust. Unfortunately, con artists are seeing their chance to step in and make a fast buck." Homeowners report they were either contacted directly by a mortgage foreclosure rescue company or came across one on the Internet. The companies claimed they would renegotiate the terms of their mortgages and stop foreclosure actions, or the homeowners would get their money back. Victims paid as much as $1,300. Most victims not only lost their homes, but they didn't get promised refunds, either. The BBB offers the following advice for homeowners facing mortgage foreclosure:

• Contact your BBB or go to www.bbb.org to request a free Reliability Report before paying any "rescue" company. You can also check with your state Attorney General and state Real Estate Commission.


• Beware of the personal approach. Some less-than-ethical businesses will stuff a handwritten note in your front door or mailbox that implies that "help" is available from someone who has your best interests in mind.


• Talk to your lender. The first thing you should do is talk to your mortgage company about how to restructure your loan payment or refinance.


• Never sign a contract under pressure and never sign away ownership of your property. Ask a trusted family member, your attorney or a financial professional to review any paperwork you may be asked to sign.


• If you feel you have been taken advantage of by an unethical mortgage foreclosure "rescue" company, file a complaint with your BBB at www.bbb.org.


• For more trustworthy advice and tips for troubled homeowners, go to go to www.mountainstates.bbb.org or call 800-564-0371. It's just good business!



The BBB The Mountain States Better Business Bureau is dedicated to fostering fair and honest relationships between businesses and consumers, instilling consumer confidence and contributing to an ethical business environment, in both the traditional and online marketplaces. The first BBB was founded in 1912, and the network of BBBs and the Council of Better Business Bureaus have grown to become the most recognized advocates for promoting ethical business and advertising practices in the United States. In 2006, the Mountain States BBB provided nearly 572,000 instances of service to consumers and businesses. The BBB's Internet self-regulation program, BBBOnLine, helps consumers identify online merchants that meet BBB standards through its Reliability and Privacy "trustmark" programs and the BBB Code of Online Business Practices.

Media Contact: Barbara Read - VP/Communications Director - 970-224-4222 / 800-564-0370 x118 -

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