During a conversation with a employee of the Florida Attorney General, I asked if timeshare fraud was the most common scam being reported. She answered that timeshare resale fraud is a huge problem, but that in her opinion both mortgage consultant scams and employment consultant scams were actually more prevalent than any others.
Most mortgage consultancy scams ensnare consumers with promises of protection from foreclosure. Many of these scams require upfront fees be paid by the home owner (often equal to three mortgage payments), and some even request the home owner sign a power of attorney form to authorize the "consultant" to negotiate with the mortgage company.
At best, the "consultant" will generate a few form letters and make a few phone calls, but often seem to accomplish nothing to help the home owner stop the foreclosure process. At worst, these scams can deed the property out of the name of the home owner- thereby stripping any equity from the property that may be left after the foreclosure occurs.
As with all types of consumer fraud, education is the key to protecting yourself. Before signing any document or paying any type of fee to any business promising protection from foreclosure, consult with an independent real estate attorney licensed in the state where the property is located. If you feel that you have been a victim of this type of crime, please take the time to report the fraud to the Federal Trade Commission and to your state's Attorney General.