Foreclosed homeowners fall victim to new scam

Eliminate middleman when it comes to collecting money owed

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Defaulting on your mortgage is one thing, but ending up in foreclosure is an entirely different feeling of loss, hurt, frustration and embarrassment. Most residential lenders will tell you that consumers will do everything in their power to keep from losing their homes (the only aberration would be calloused investors who walk away from mortgages when their would-be, short-term goldmines turn into a bust). The prime reasons for default typically are unexpected--loss of job, death, divorce--situations that never can be predicated by a credit report or a loan application. A disturbing trend has begun to compound the emotional stress at the foreclosure sale. Some companies and private individuals are offering recently foreclosed former owners "to get a fresh start" by paying them a deeply discounted cash amount for an assignment of the owner's rights to surplus funds. "It's a terrible thing for a person who probably needs all the funds they can get their hands on after they have been thro...