Everyone wants to avoid foreclosure scams, however not everyone is aware that there tons of scam artists out there who take advantage of people who are struggling to make their mortgage payments. There are companies nowadays who call themselves the "loan modification consultants" or foreclosure assistants. But instead of doing you good, they will do more damage to you, your credit scores and they will charge more fees and in the end, they would be of no assistance at all. Scammers would often give homeowners a new address to diverge the mailing address of mortgage payments, then the scammer will collect the payment from and you, and you will no longer hear from that person's whereabouts after that.

Another style of scammers is to get the borrower to sign a title over them and then that company will tell the person that he or she will get the title back through mail. Unknowingly, the owner will seem to be renting their own home and can be evicted at any time by the scammer through foreclosure.

In order to avoid this, here are some tips to stop foreclosure scams from happening to you.

1. Avoid paying up front and steer clear from consultants who ask for fees firsthand- scammers often charge fees ranging from $ 300 up to $ 3,000 which is actually a lot, specially that this is really intended to be free to the homeowner. Legit nonprofit housing counselors won't require pre-service fees from you, but if they do, then it's best to make sure about that person and put on hold any deals you are planning to do.

2. Be careful with sending mortgage payments- first of all, always make sure that you know the address that you are sending your mortgage payments to. Always make sure they are correct. The address can actually change if the mortgage company is absorbed by a larger financial institution or if you refinanced your loan with a new company. Always be skeptical about the person who is asking for a change of your address and just to be sure, call your mortgage company and verify everything.

3. Do not sign anything unless everything is all clear- it is always important to read everything in the paperwork even if you know how the process goes. Take your time in reading everything and make sure it is in sync with what your consultant tells you it says.

4. Look for an HUD approved housing counselor- look for legit people who can help you out with this and don't just let anyone do the counseling for you. Make sure that the person is verified by the HUD's web.

5. Make sure you have a reliable source of information- an HUD approve counselor should answer all of your questions and everything he or she says should be legit

Avoid foreclosure scams and check credit score report regularly & keep it in good shape.