Beware Of Forclosure Rescue Scams

President Obama has promised to help people in danger of losing their homes. But some of those same people could lose their homes another way, by falling victim to scam artists.

As home foreclosures multiply, so, too, do the number of victims being taken in by foreclosure rescue scams in states such as Florida, California and Illinois, CBS News correspondent Cynthia Bowers reports.

"We've gotten thousands of complaints on these types of scams," said Illinois attorney general Lisa Madigan.

Madigan says scam artists are able to zero in on their victims because foreclosure filings are public information.

"They show up at your home, and they give you the hope that you're going to be able to stay in your home," Madigan explained.

That's exactly what happened to Bernice Holcomb when her condominium went into foreclosure.

"So, when this guy showed up at your door with this contract, you really, in your heart of hearts, believed he was going to save you?" Bowers asked.

"I sure did. He told me that everything would be taken care of, that they do this all the time. They work with mortgage companies and they get you all straightened out," Holcomb said.

Bernice says she signed a contract with a company named Foreclosure Solutions. She initially gave them $695 and later paid them another $1400 which they said they'd forward to her lender.

"The things he was telling me was just what I needed at that particular time," Holcomb said.

Holcomb says she believed her mortgage problem was being addressed. So imagine her shock when she found out her home was just days away from being auctioned off.

"I was really, really upset. I cried. Yes, I did," Holcomb said.

Madigan has filed a lawsuit against Foreclosure Solutions, charging that they did not contact consumers' lenders immediately as promised and that instead of forwarding the mortgage payments, they kept the money.

"What these folks are usually doing is taking money up front, then taking your mortgage payments, never contacting your lender, and so you think you're saving your home, but all you're doing is being ripped off," Madigan said.

To avoid foreclosure scams, experts say be aware of these red flags. A promise that your home can be saved. A demand for an up-front fee and a request that the mortgage payment be sent to the rescue company, not the lender.

Holcomb lost $2,000 and had to file for bankruptcy in order to save her home. She says all she feels for the people who scammed her is pity.

"That's a terrible way to make a living, scamming people and taking from the people that's worse off than you," Holcomb said.