From Under A Rock

As with any time that people are suffering, along with those legitimately trying to help the folks being harmed, there are others who seem to crawl out from under the nearest rock to take advantage of anyone they can lay their paws on that is less fortunate. In this case, we have the constant presence of 'people' trying to take advantage of those facing foreclosure. They always have some scam that's "guaranteed" to stop any foreclosure proceeding you face and, in some cases, get you cash to boot.
In this case, the California Attorney General has joined with officials from a number of their states to stop the activities of a national ring of foreclosure scammers whose sole real objective is to see how much money they can screw out of innocent people facing foreclosure. The ring that is now faced with prosecutions in a number of states, California among them, sent an estimated 2 million pieces of mail to victims in at least 17 states, promising a variety of forms of assistance or relief to the intended recipients. Included were promises of stopping foreclosure actions, principal reductions and forgiveness, lowering of rates and the filing of suits against the homeowners' lenders. All that was necessary by the homeowners was an up front fee or fees usually in the thousands of dollars to retain these scammers. Millions of dollars were handed over to these crooks. Actual fees charged were up to $10,000 per person. Out of all the promised things that actually happened was the scammers took the money from the innocent victims and many of them additionally lost their homes in foreclosure.
In California, the principals in this scam were three lawyers, four law firms and at least 14 other defendants. As part of its enforcement action, the California Department of Justice, assisted by the Department of Housing & Urban Development (HUD's Inspector General)and the California State Bar, seized the law practices mentioned above as well as a number of non-attorney firms engaged in the scam. Civil and criminal cases are likely to follow.
As I've said before here, if someone approaches you to "help" you in such a situation and insists on money before anything is done, there are two things to do immediately: 1.) Run like hell away from this crook; and 2.) call the authorities.

If you have been approached and, unfortunately, laid out any cash to these individuals or anyone like it, call the California Attorney General's office. If you are in another state, contact the attorney general of your state. Let's help these guys get a new home they so richly deserve--PRISON!