Federal Reserve Board reaches out to consumers

03.07.09
By Timothy Jones

Taking decisive action to help stop foreclosure is prudent by homeowners suffering at the hands of economic instability.

But Americans are advised to do so cautiously and diligently by the Federal Reserve Board in its "5 Tips" series on avoiding foreclosure scams released during National Consumer Protection Week.

"Saving a home from foreclosure requires fast and informed action but the solution doesn't have to be costly," said Federal Reserve governor Elizabeth A Duke. "It shouldn't hurt to get help."

Given the tendency for scammers to target financially vulnerable consumers, it is important to seek counseling and other support measures from trusted sources if you are in financial distress.

The Federal Reserve Board also advises consumers to work only with housing counselors approved by the U.S. Department of Housing and Urban Development. These services should be at low or no cost to you. Proceed cautiously if that is not the case, it advises.

Companies that make promises, guarantees or other offers that sound too good to be true are likely misleading you in some way. If you feel pressured or believe you have been duped, reach out to authorities to report suspicious activity.

The Federal Reserve Board recommends checking out www.consumeraction.gov for more information or to report scam activity.

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Housing counselors help some homeowners manage foreclosures