More scams appear

By JESSICA MAYRER Chronicle Staff Writer

As the number of housing foreclosures begins to climb in Bozeman, people in financial distress should be on the lookout for scam artists who take advantage of people in vulnerable financial positions, consumer watchdogs say.

“I’m seeing so many scams,” Beverly Johnston, of the Consumer Credit Counseling Service, said. “There’s been a surge of it.”

Foreclosure filings are public records, so predatory organizations can easily find the information and target folks who are struggling financially.

“They prey on any kind of societal weakness,” said David Smith, president of the Bozeman Area Chamber of Commerce.

Scammers offer great deals on “foreclosure rescues,” promising to pull people out of the hole if they come up with an up-front fee.

But if the deal sounds too good to be true, experts say, it likely is.

Too often, desperate folks pay those up-front charges and never hear from the company again, Johnston said. Sometimes faux finance organizations even sneak in a “quit-claim deed,” which, if signed, entitles the scammers to the property.

The longer and deeper the recession gets, the more scams, Better Business Bureau lead investigator Zan Deery said.

“Systemwide, we’ve seen lots of it,” she said. “The pitches have definitely doubled.”

And in many cases, high-pressure or deceptive marketing pulls people into making bad decisions, Deery said.

“Beware of the ones that offer to do everything for you,” she said. “They’re preying on your emotions.”

The best thing to do when faced with a personal financial crisis is contact your existing lender as soon as you realize there’s a problem, Deery said. If you’re having a tough time making payments, ask your banker if you can restructure the loan.

If that doesn’t work, try selling the home to pay off the lender, Deery said.

But if you do wind up shopping around for financing options, do your homework before jumping into anything. Look up BBB reports, touch base with the Montana Department of Justice’s consumer-protection division and the Secretary of State’s Office to see if the company is legitimate.

A basic Internet search, too, may turn up information.

To make sure you are dealing with someone you can trust, it’s best to work with local, reputable companies, Deery said. Require a contract, and read it. Don’t ever sign anything you don’t understand.

Make anyone you deal with put everything in writing. If they won’t, then go somewhere else. “Consider it a huge red flag,” Deery said. “Make sure that they’re really walking their walk and talking their talk.”

And if you feel a company is not on the up and up, contact the Better Business Bureau or the DOJ.

“You really have to be wary,” Deery said.

Jessica Mayrer can be reached at jmayrer@dailychronicle.com or 582-2635.

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