Did you catch the Wall Street Journal article March 11, 2009 about the scam artists coming out of the woodwork offering to "negotiate" great terms with banks on behalf of the more than a million people who are threatened by foreclosure on their homes?

Forgive me for generalizing, but many of these people are vulnerable. These are the same people who didn't do their homework to understand the lending terms that got them into hot water in the first place. And, I don't know about you, but it seems to me that when people are freaking out at the notion of losing their home...and someone comes along and says, "Hey, I can get you out of this jam and help you take advantage of the government's program," isn't it likely that many of these panicked people will fork over $1,000 or more?

If you know someone in this position, tell them, "Don't do it!!!" Tell them to work with their bank directly. If the customer service rep isn't familiar with the foreclosure-prevention plan, ask to be transferred to someone who is.

Here are some other things to recommend to people in a likely foreclosure predicament:

1. Don't pay any fees up front to anyone.

2. Work only with a HUD-approved NON-PROFIT counselor, if you feel you can't do it alone.

3. Run away from anyone telling you they can guarantee you results. They lie.

4. For heaven's sake, don't sign any document you don't understand or sign any document that's blank.

5. Persist with your bank and your counselor until you get better terms for your mortgage. 

 Read it the Wall Street Journal here:

http://online.wsj.com/article/SB123673412204590481.html#articleTabs%3Darticle

As always, I invite your comments and questions.