"The most important thing people can do is contact the lender's loss mitigation department," said Debra Zimmerman, an attorney at L.A.-based Bet Tzedek Legal Services.
If you think you are the victim of fraud from a broker or lender, talk with an attorney or contact the Los Angeles County Department of Consumer Affairs, experts advise.
Before signing anything, county consumer-affairs investigator Gutierrez cautioned, read the fine print or have a housing counselor or attorney review the documents. Don't take legal advice from family or friends or trust someone because they're recommended by family. And if someone offers to buy your home, get a legitimate appraisal from a source not associated with the person making the offer, Diehl added.
"Many of my clients say they heard about foreclosure scams on TV but trusted the guy anyway. But when this happens, their equity gets stolen. In many cases, we can unwind the loan," Duran added.
"But even when you can get the house back, they've lost the equity and will have to pay the money back."
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Michelle Hofmann can be reached at michellehofmann@earthlink.net.
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Worried about mortgage rescue scams?
For business practices checks:
* Los Angeles County Department of Consumer Affairs Real Estate Fraud department; (800) 973-3370; dca.lacounty.gov/contact.htm.
* California Department of Real Estate; (213) 620-2072; www.dre.cahwnet.gov.
* California Department of Corporations; (866) 275-2677; www.corp.ca.gov.
For counseling and information:
* The Housing Rights Center's Fair Housing Anti-Predatory Lending Hotline refers callers to appropriate local agencies for education, counseling and legal advice; (800) 477-5977.
* L.A. County Department of Consumer Affairs Real Estate Fraud and Homeowner Assistance Program; (800) 973-3370; dca.lacounty.gov/contact.htm.
* Los Angeles Neighbor Housing Services; (213) 381-2862; www.lanhs.org.
* National Assn. of Consumer Advocates; (202) 452-1989; www.naca.net.
* The NeighborWorks Center for Foreclosure Solutions; www.nw.org/network/neighborworksprogs/foreclosuresolutions/default.as p; (202) 220-2300.
* U.S. Department of Housing and Urban Development, HUD-certified counselors; (800) 569-4287; www.hud.gov/offices/hsg/sfh/hcc/hccprof14.cfm. Choose "search online." Select California.
For legal help:
* American Bar Assn.; www.abanet.org. Select "legal help."
* Legal Services Corp. hot line can help you find legal services office in your area; (202) 295-1500; www.lsc.gov.
* Los Angeles County Bar Assn. attorney referrals; (213) 243-1525.
* National Assn. of Consumer Bankruptcy Attorneys; (202) 331-8005; www.nacba.org/attorneyfinder.
If you suspect mortgage fraud:
* If Freddie Mac owns the loan, (800) 437-2838. For other lenders, contact the L.A. County Department of Consumer Affairs, (800) 593-8222.
* To file a complaint with the Office of the Attorney General; (800) 952-5225; ag.ca.gov/consumers/general.php.
