As a follow-on to my post last Wednesday about some good stories NPR has run recently on the credit crisis, here’s another good one from the May 26 Morning Edition about a scam I’ve seen far too much of in my practice: the so-called “foreclosure rescue” industry. These are companies that hoodwink people facing foreclosure into signing over the title to their homes under the guise of helping people refinance their mortgages and fix their credit:

The schemers promise the homeowners that they can live in their houses mortgage-free, and then buy their houses back after a year. What their victims don’t know is that the scammers work with straw buyers to take out a bigger mortgage that essentially cashes out any equity in the house.

“These cases are very difficult to undo,” [lawyer Jessica] Attie said, “because the people who get to take out the cash often disappear. You can’t find them you can’t find the money and the property is left encumbered by a huge mortgage.”

Please, talk to an attorney before signing on to any plan that promises to help you save your home. There are a lot of people making such promises right now, and not all of them have your interests in mind. A knowledgeable bankruptcy and debt attorney can help guide you through the minefield and plan the strategy that works best for you.