Seattle attorney Melissa Huelsman is swamped with victims of real estate foreclosure scams.

"Its bad and getting worse," she said.

Her desktop file cabinets are filled with case upon case of local homeowners tricked out of their homes by people claiming to help them keep their homes.

Homes targeted for foreclosure are routinely listed in public records. If the delinquent mortgage payments are not brought current by the deadline, the homes are sold at auction at the county courthouse. The public lists are for the purpose of helping people interested in buying the foreclosed properties.

"And then the people who are running these scams use that information to start soliciting the people who are facing foreclosure," explained Huelsman.

"So they send out fliers.They make telephone calls. They very often show up at people's homes. It can be very aggressive marketing. I have clients who are in foreclosure who are receiving 20 and 30 pieces of mail a day!"

Some foreclosure rescue scams take the form of loans that legally transfer your property to the lender.
Some scammers charge high fees for foreclosure "counseling," but never provide a service.

In the worst cases, the third party has you sign your home to them with the promise of letting you rent or lease the home until you can buy it back. But the rent payments are often as high or higher than the mortgage payments you couldn't afford. Eventually you're evicted from your own home, which now belongs to someone else.

What's the profile of some of these defendants? Huelsman says they come from all walks of life.

"Some of the defendants have been realtors, some have been attorneys. Some have been just individuals who decide they want to try and make money."

Rising foreclosure rates make it a scammers paradise.

Last year, more than 1.2 million people lost their homes nationwide - a 42-percent jump over 2005. This state saw a 25-percent jump.

On Friday, State Attorney General Rob McKenna joined forces with other state, federal and community watchdogs to find ways to protect consumers from the growing fraud.

With more consumers facing skyrocketing mortgage payments, Huelsman says foreclosure fraud will likely remain at crisis levels for the next two to three years.

If you're having trouble paying your mortgage, call your lender immediately.

You may be able to make payment arrangements. There are also certified, non-profit housing counseling agencies that can help you understand your options and your rights.

You may qualify for an interest-free HUD loan.

You can also sell your home before foreclosure and keep save some of your equity.

But stay away from anyone who volunteers to help you avoid foreclosure by paying a fee or signing over your title.

For more information on non-profit foreclosure counseling:

HUD-Approved Housing Counseling Agencies

Urban League of Metropolitan Seattle

United Way of King County

Fremont Public Assocation