The ongoing mortgage crisis means that the number of foreclosures is increasing. With homeowners desperate to avoid foreclosures, there are many scams flourishing that prey on those homeowners that desperately want to hold onto their homes. How do you know if an offer for assistance is legitimate? Often it doesn't take anything more than old fashioned common sense. Sometimes, however, scam artists are so misleading that it is easy to be confused.

What are the warning signs that a foreclosure company may be a scam?

• Lack of professionalism. This one should be obvious, and, fortunately, many scammers fail to present themselves as professionals, and are easily recognized. Think of how most established businesses advertise. If a company does not use traditional advertising, it should raise a red flag. If you find fliers under your windshield or stuck in your door, someone cold calls your house, or knocks on your door, they are probably not a legitimate agency.

• They ask for large fees in advance. It is a testament to how desperate people are to save their homes that many people, in danger of losing their homes, will pay an exorbitant amount of money to someone they have never heard of that promises to save their home. Often, the scammer asks for a fee that is equal to the homeowner's equity in the home, and the homeowner hands it over.

• The company asks you to sign your deed over to them. They often have excellent reasons for this, promising to sign the home back over after they stop foreclosure proceedings, and allowing you to "lease" the home from them until this occurs. Not only does the scammer get the deed to your home, which, by the way, does not release you from responsibilities on the loan, they also collect a hefty "lease" fee, at least until they evict you.

• They offer to help you refinance the home. You obtained your mortgage initially, why would you need help to refinance? Typically, the scam company collects a large fee and does nothing. While they do not take over ownership of your home, like some of the more aggressive scammers, they do allow the foreclosure process to proceed. The foreclosure scam companies typically tell you not to contact your lender because they will take care of all communications. Meanwhile, they do nothing, and the lender assumes that you are a deadbeat payer.

• They tell you one thing, but discourage you from reading the contract. People who are successful at operating scams are often smooth talkers. They will tell you one thing, such as negotiating a settlement with your lender, while at the same time presenting you with papers that sign your home over to the scam company.

How can you avoid being a victim of scam foreclosure companies?

• Never sign anything without reading it thoroughly. Do not worry about appearing rude. Read each form completely and do not sign anything that you do not understand. Tell the person you are dealing with that you need to take the paperwork home to review it and show it to a real estate attorney. They will normally review documents for a nominal fee, and can tell at a glance if you are being scammed.

• Understand that verbal agreements are non binding. Do not pay attention to what the person says, but read all documentation carefully.

• Never sign a form that has multiple blanks that can be completed later, and sign your paperwork with blue, not black, ink. This helps prove that paperwork is an original and not a copy.

• Never, ever, sign your deed over to anyone else. Many people fail to realize that the mortgage and the deed are two separate things. You do not eliminate your responsibility with the mortgage by signing over your deed, but you do eliminate your claim to the property.

• Any threats or intimidation should be clear evidence that the foreclosure company is not legitimate.

• Before entering into any agreement regarding your mortgage, take the paperwork to your current lender. They do not want you to be scammed any more than you do, and they are well versed in current scams in your area. Even if you are in the final stages of foreclosure, and feel that the lender has no time for you, ask to speak with someone in the loan or loss mitigation department and show them the documents.

• Remember the same thing that we all learned as children, if something is too good to be true, it probably is.

Foreclosure scams prey on the fear that people have of losing their homes. While there are legitimate companies that help the consumer who is experiencing difficulty paying their mortgage, companies that solicit you are typically scams. To find someone that can help you remain in your home during this difficult time, contact your local HUD office. This federal program offers a variety of ways to deal with your financial problems while avoiding foreclosure. Your lending institution's loss mitigation specialists can also work with you to keep you in your home.