By Sarah Schulz
sarah.schulz@theindependent.com

As people struggle to make house payments and keep their homes out of foreclosure, scam artists are popping up to prey on them.

"If any company claims it can stop foreclosure if you sign a document appointing its representatives to act on your behalf, beware," Nebraska Attorney General Jon Bruning said. "You could lose your home and your equity."

The mortgage foreclosure crisis is sweeping across the nation and hitting Nebraskans. Mortgage foreclosures in the state increased 31 percent in 2007, and the state ranks 25th in the nation for foreclosures, according to Bruning's office.

In an effort to help protect homeowners, Bruning supports the Department of Banking and Finance's proposed legislation that would provide protection to homeowners dealing with foreclosure. The bill regulates foreclosure consultants and equity purchasers, plus adds a criminal penalty for violations, according to Bruning's office.

Brian Broich, Grand Island office manager of Consumer Credit Counseling Service of Nebraska, said people should receive three notices in the mail before foreclosure begins. Any correspondence concerning a mortgage should come from the lender, so if a person receives foreclosure or mortgage information from another source, they should be vigilant, he said.

"Call your lender," Broich said.

Check scams are also a big consumer issue in Nebraska. Lincoln Postmaster Kerry Kowalski warned Nebraskans not to fall for a fake check scam.

"No one who wants to give you money should ask you to send them money," he said.

U.S. Postal Inspector Paul Beekhuizen added, "Fake checks are a problem. I've seen thousands. Don't send your real money to scammers in hopes of getting money that doesn't exist."

Broich said people need to be skeptical of any check from an unknown source that they get in the mail. If there's a number attached, call it, but never give out personal information to an unfamiliar person or agency, he said.

"If you suspect something, call the U.S. attorney's office," he said.

In addition, some people struggling to make ends meet may consider advance-fee loans to help ease the financial pinch, according to Bruning's office.

"Consumers are blinded by the convincing promises of the loan, and they don't see the sting coming," said Jim Hagerty, president of the Better Business Bureau. "No legitimate lender will ever ask you to pay a fee in advance to obtain a loan. If someone does, just say no."

For more information about mortgage foreclosure, scams and consumer tips, go to the attorney general's Web site at www.ago.ne.gov. Additional information is also available at: www.fakechecks.org, www.bbbnebraska.org and www.ndbf.org.