From the Atlanta Business Chronicle
Now, a wave of foreclosures is producing an even uglier consequence: an epidemic of fraud perpetrated by "consultants" offering to save homeowners from being put out on the street. …Typically, the companies advertise on the Internet, by mail or over the telephone, said Chris Starr, a lawyer from Marietta who specializes in consumer finance. …
Bill Brennan, director of the Atlanta Legal Aid Society Inc.’s Home Defense Project, said a growing number of distressed homeowners are coming to his organization with complaints.
"They tell us they’re sending $800 to $900 to out-of-state companies that are offering to help," he said. "These companies take their money and basically do nothing."
More complicated forms of foreclosure rescue fraud involve homeowners who voluntarily surrender their title to a consultant offering to stop a foreclosure and are duped by scam artists into signing over the title.
"They walk away with all of the equity and the homeowner is left with nothing," said Sen. Gail Davenport, D-Jonesboro.
Davenport’s Senate district includes Clayton County, which has been hit hard by residential foreclosures. More than 650 foreclosures were filed in Clayton in May, according to figures compiled by RealtyTrac Inc., the fourth-highest in Georgia and far out of proportion with its population.