Stay in touch with your mortgage lender. Contrary to what a foreclosure scammer will tell you, you should contact your lender the minute you have trouble paying. Often, you can refinance or restructure the loan. Keep contacting your lender during the mortgage workout or foreclosure process.

Get full information about the foreclosure process. Your best offense in saving your home, and your best defense in preventing scams, is to learn about and understand the foreclosure process. Get full information about the process in your state, understand all deadlines for responding to documents from the court and lenders, and be sure you know at which point in the process you can lose the legal right to own your home.

Seek help from a legitimate foreclosure counseling agency. Get help from a HUD-approved Housing Counseling Agency (see HUD's website at www.hud.gov or call 800-569-4287) or from a counselor certified by the National Foundation for Credit Counseling (www.nfcc.org).

Check state laws governing foreclosure consultants. Many states have laws that specify what foreclosure consultants can and cannot do, what must be included in the contract for services, and require the consultant to provide the homeowner with a three- or five-day right to cancel the contract (meaning if you change your mind within a few days, you can get out of the deal). If a foreclosure consultant hasn't complied with your state's laws governing foreclosure consultants, go elsewhere -- it's a red flag that the consultant is either incompetent or not above-board. (On the flip side, just because a consultant complies with all of these laws doesn't mean he's not a scammer.)

Never make a verbal agreement. Always get everything in writing.

Read and understand everything before signing any document. Have a lawyer, financial professional, or trusted friend or relative review the documents too. This is especially true if you are transferring title to your home to someone. Never sign a blank page or a document with blank lines.

Use your own translator. If you don't speak English, use your own translator. Don't rely on the translator provided by the company or organization helping you.

What to Do If You Think You've Been Scammed

If you think you've been scammed by someone before or during the foreclosure of your home, get help immediately. You may still have time to save your home. Or, you may be able to sue the scammer to recover your home or some of your lost money. Contact a lawyer, a HUD-approved Housing Counseling Agency, or a counselor certified by the National Foundation for Credit Counseling (contact information is listed above.)

Be sure to report suspected fraud to local and state authorities. Authorities may be able to help in your individual case. And even if they can't help you, your complaint may lead to a criminal investigation (especially if others have complained against the same scammer).To report possible fraud, contact your state attorney general's office, the state district attorney, the Better Business Bureau (www.bbb.org), the state department of real estate, the Federal Trade Commission (www.ftc.gov), or a lawyer .

For more information on the foreclosure process, obtaining reputable credit counseling services, and pulling yourself out of debt, read Solve Your Money Troubles: Get Debt Collectors Off Your Back & Regain Financial Freedom, by Robin Leonard, J.D., and attorney John Lamb (Nolo).