Congress looks into foreclosure rescue scams

Senate committee takes testimony, bill in the works

Rising mortgage delinquencies and foreclosures have created a “target-rich environment” for rescue scam operators, a Federal Trade Commission official told members of a Senate committee looking into scams aimed at the elderly.

Foreclosure scam artists are targeting areas hard hit by the housing downturn with advertisements in local publications, or contacting homeowners listed in public foreclosure filing records, said Peggy Twohig, associate director of the FTC’s Division of Financial Practices.