One problem with the big housing bubble is that it’s much like the stock crash of 1929. People are borrowing against their homes, and eventually they’re going to find themselves strapped, about to lose said home, and prey for foreclosure “rescuers,” who in fact are out to separate the homeowner from their house. Two favorite ploys are to get the homeowner to sign over the house believing he’ll continue to live there as a renter and be able to buy it back, but the terms are so horrible, the homeowner loses completely. Another tactic is to have the homeowner sign papers to “bring the mortgage current.” These papers actually surrender the home to the scammers.

What to do if you’re facing foreclosure? First, dificult as this may be, talk to your mortgage company. You may well be able to renegotiate the mortgage or arrange payment that will not result in foreclosure.

If foreclosure is a definite, consider filing bankruptcy. As horrible as that is, losing your home, and everything you have in it, to a scammer would be one thousand times worse.