Debt counseling organizations provide many services. They can take a look at your personal situation and advise on your options to avoid Home Foreclosure.

· What can an attorney do for me?

Many people facing Home Foreclosure do not need an attorney. An attorney can advise you on your options for avoiding Home Foreclosure and help you develop a plan for protecting your assets.

· How can I find out if a counseling agency is legitimate?

There are a lot of organizations posing as "counseling agencies" that prey on people facing Home Foreclosure. Make sure that the counseling agency you choose is approved by HUD (US Department of Housing and Urban Development).

· How can I tell if a lender is legitimate?

Again, beware of scams. Check with the Better Business Bureau, your local Chamber of Commerce, and an accredited and HUD-approved credit counseling service to see if the lender is legitimate.

· A Home Foreclosure service has asked me to sign over the deed to my property, relieve me of obligation, and pay me proceeds when the property is sold. Is this legitimate?

There are a lot of lenders who use scams like "equity skimming" to make money off of people facing Home Foreclosure. With "equity skimming," a "buyer" approaches you, offering to pay off your mortgage and/or give you a sum of the money when the property is sold. The "buyer" then suggests that you move out and deed the property to him or her. Problem is, the buyer often collects rent for a while, doesn't pay the mortgage payments and lets the lender to foreclose. Deeding your property to someone else does not necessarily relieve you of your loan obligations.

Types of Home Foreclosures

The type of loan that was used to purchase the foreclosed home determines the type of Home Foreclosure. For example, if a home was purchased using a conventional loan, the type of Home Foreclosure will be a bank Home Foreclosure. If the loan was insured by an organization, the home becomes the property of that organization in the event of Home Foreclosure. FHA (Federal Housing Authority) loans that result in Home Foreclosure become HUD Foreclosures, and there are also Fannie Mae (FNMA - Federal National Mortgage Association) foreclosures, and VA (Veterans Administration) foreclosures. If the Home Foreclosure results from nonpayment of taxes, it is an IRS foreclosure.