What it means. While the White House has pledged $75 billion to stem foreclosures, plenty of scam artists are getting in on foreclosure “rescue” measures. “Just as this administration has intensified our efforts to help homeowners, those who would seek to prey on the most vulnerable also seek to intensify their efforts as well,” said Treasury Secretary Timothy Geithner at a joint press conference yesterday with the Justice Department and the Federal Trade Commission. To date, the FBI is investigating approximately 2,100 mortgage-fraud cases.

Why the buzz? The Federal Trade Commission yesterday announced a crackdown on foreclosure scams. The agency has taken legal action against the Federal Loan Modification Loan Law Center (shown), Bailout.hud-gov.us, Home Assure d/b/a Expert Foreclosure, Hope Now Modifications LLC, and New Hope Property LLC d/b/a New Hope Modifications LLC. The agency has sent letters to another 131 companies suspected of engaging in deceptive practices related to foreclosure rescue.

Fraudulent firms often create a false government affiliation, for example by including ".gov" in their URL. Their marketing literature then lures distressed homeowners with reassuring terms like “guarantee” and “97 percent success rate.” Homeowners who bite are charged exorbitant up-front fees ($1,500 to $2,500 in the case of Home Assure) for services they never receive.

• Accepts payment only by cashier’s check or wire transfer.

• Asks you to make mortgage payments directly to it rather than to your lender.

• Offers to buy your property for cash at a fixed price that is not set by the housing market at the time of sale.

• Offers to fill out paperwork for you.

• Pressures you to sign paperwork you haven’t had a chance to read thoroughly or that you don’t understand.