Question: I work for a local nonprofit agency. A client of mine is behind on his mortgage. He has been receiving offers from companies promising to keep his home out of foreclosure. They seem a little too good to be true, and I was wondering if you have any advice I can pass on to my client.

Answer: You are right to be leery of these offers. Rising foreclosure rates have led to a growing number of scam artists offering to "rescue" homeowners in financial distress. They use a wide variety of scams and target people of all ages in virtually every community across the country.

Foreclosure rescue scams usually revolve around heavily promoted deals supposedly designed to save the homes of people facing foreclosure -- those who have fallen behind on their mortgage payments. They proclaim to "save your home" or "pay your mortgage," but in reality generate a quick profit for the scam artist or strip away the value of the home with no benefit to the owner. The scam artist generally looks to make a quick profit through fees or direct mortgage payments that are never passed on to the lender. Sometimes the scammer assumes ownership of the property by deceiving the homeowner.

How does a foreclosure rescue scam work?

• The "rescuer" identifies distressed home-owners through public foreclosure notices in newspapers, via the Internet or at government offices.

• The "rescuer" then contacts the homeowner by phone, personal visit, card or flier left at the door, or advertising.

• The initial contact typically centers on a message that tells homeowners that they can stay in their house easily, get a "fresh start," keep their credit rating or receive instant cash.

What are the red flags to keep in mind?

It is wise to proceed with extreme caution if an individual or company:

• Calls itself a "mortgage consultant" or "foreclosure service."

• Contacts people whose homes are listed for foreclosure, including anyone who uses fliers or solicits for business door-to-door, by phone or e-mail.

• Encourages you to lease your home so you can buy it back over time.

• Collects a fee before providing any services.

• Instructs you to cease all contact with your lender, credit or housing counselors, lawyer or other legitimate experts.

• Tells you to make your mortgage payments directly to him or his company (not the lender).

• Requires that you transfer your property deed or title to him or his company.

• Makes a promise that seems too good to be true -- for example, instant cash with "no strings attached."

• Tells you that as part of the deal you will need to move out of your house for some period of time for remodeling or other reasons.

• Offers to buy your house for cash at a fixed price that is not set by the housing market at the time of sale.

What should a homeowner never do?

• Don't be pressured to sign a contract. Take your time to review all documents thoroughly, preferably with a lawyer who is representing your interests only.

• Don't send or give your mortgage payments to someone other than your lender, even if he promises to make the payments for you.

• Don't sign away ownership of your house to anyone without advice from a credit or housing counselor or lawyer.

• Don't rely on oral agreements -- they mean nothing. Get all promises in writing and keep copies of all documents, especially those you sign.

• Don't sign anything containing blank lines or spaces. Scammers can add information later without your knowledge or approval.

• Don't fall for promises that are often used to lure homeowners into scams, such as claims to save your credit rating, promises of instant cash, guarantees that a buyer will be found within a certain number of days, help in filing for bankruptcy to "stop the foreclosure" and offers of free rent or gifts.