The struggling real estate market has forced many to consider different options to save their most valuable asset -- their home. This phenomenon has spread across the country, leaving almost no state untouched. Illinois is no exception, and now many are facing the possibility of foreclosure.

Unfortunately, when conditions create a population that has become afraid and even desperate it can attract businesses that are ready to take advantage of this situation. As a result, many new companies have been formed to offer services that appear to remedy the fears of these desperate homeowners. They claim that after they receive upfront fees, they can help them avoid foreclosure and preserve their credit. Many times they only exacerbate the problem and put the homeowner further in debt, despite promises to do the opposite.

Currently there is litigation across the country against this type of fraud. States including Illinois have filed suits against these types of companies. One state has received guilty pleas from two such companies. The Illinois attorney general has also filed suit against three companies alleging they have charged thousands of dollars in upfront fees and provided no services. This is possibly only the tip of the iceberg.

The behavior of these companies may be viewed as offensive. It takes advantage of people when they have a great need for help, and their thinking might not be the clearest. But these situations are complicated and difficult to prosecute. Although they might be viewed as greedy and opportunistic, it can be difficult to prove they are criminal. And from the other side of the coin, it could be viewed as bad judgment on the part of the home owner.

This problem underscores just how important it is to seek help from a trustworthy person or organization. Homeowners would most likely benefit from seeking experienced legal advice early in order to stave off foreclosure. Waiting until the situation becomes desperate only clouds judgment and increases the likelihood of making impulsive and poor decisions.

Source: Forbes, "Mortgage fraud still rampant," John Wasik, Jan. 26, 2012