When a homeowner falls behind on mortgage payments, the reality of a looming foreclosure filing and bank repossession can cause fear and desperation.

During these trying times, it’s not uncommon for some homeowners to make poor, uninformed decisions and fall victim to foreclosure rescue scams.

Unfortunately, once homeowners are in default and foreclosure proceedings begin it becomes a matter of public record. Armed with this information, crooks often approach these distressed homeowners with bogus or misleading “assistance that eventually make bad situations worse.

The Boston Herald recently highlighted such a scheme, which is “ripping through Boston’s poorest neighborhoods.

Here’s a snip:

“… a cottage industry of shady small-time speculators has sprung up to target these struggling homeowners…. One popular tactic: persuading a beleaguered homeowner faced with foreclosure to “temporarily sign over his home in exchange for financial assistance. You can guess the rest. Another ploy: offering to make some phone calls - to pull a few strings - on behalf of the homeowner with the lender. Of course, all that is needed is a few thousand dollars up front.

Fortunately, the new scam has caught the attention of the Attorney General, according to the article. And, the office has brought two rescue scammers to court and is exploring additional cases.

The Massachusetts example detailed above represents a small slice of this nationwide problem. With the increase in foreclosures across the board, state governments and local authorities are finding it harder and harder to crackdown on each and every rescue scam.

It’s critical that homeowners don’t fall into this trap. Therefore, anyone who sends fliers via mail or knocks on front doors talking about quick and harmless bailout offers should be considered suspicious.

And, always remember that viable resources and options do exist to avoid foreclosure. For starters, fill out this form to speak with a reliable professional.

Most important, however, is to remain as level-headed and as cool as possible.

Good help is out there … it’s just a matter of finding it before bad help finds you.