Sad but true, we are in the midst of record foreclosure rates. And also sad but true, there are charlatans who would gladly take advantage of this family tragedy for personal gain. And that brings me to TheStreet.com’s warning about mortgage rescue scams:

Foreclosure-rescue scams usually revolve around heavily promoted deals supposedly designed to save the homes of people who have fallen behind on their mortgage payments and are facing foreclosure. The scam artists proclaim to “save your home” or “pay your mortgage,” but in reality they only generate a quick profit for themselves while possibly stripping away the value of the home with no benefit to the owner.

“Scam artists can evict a family from their own home and then sell it on the open market before the homeowner has any idea of what is going on,” says Gail Cunningham, spokesperson for the National Foundation for Credit Counseling.

Make no mistake, there are legitimate services that will help you as well, and they too are growing. The most helpful tip they have for selecting a service is that scammers often ask for money up front, while legit services usually do not. The National Foundation for Credit Counseling adds this list of red flags:

The NFCC advises homeowners fearing foreclosure to proceed with extreme caution if an individual or company:

• Calls itself a “mortgage consultant” or “foreclosure service.”
• Contacts people whose homes are listed for foreclosure, including anyone who uses flyers or solicits for business door-to-door, by phone or email.
• Encourages you to lease your home so you can buy it back over time.
• Collects a fee before providing any services to you.
• Instructs you to cease all contact with your lender, credit or housing counselors, lawyer or other legitimate experts.
• Tells you to make your mortgage payments directly to him or his company (not the lender).
• Requires that you transfer your property deed or title to him or his company.
• Makes a promise that seems too good to be true, for example, instant cash with “no strings attached.”
• Tells you that as part of the deal you will need to move out of your house for some period of time for remodeling or other reasons.
• Offers to buy your house for cash at a fixed price that is not set by the housing market at the time of sale.

You can also check out this clip by Freddie Mac. My advice? Have an observer come with you to meet with such companies: a lawyer; your adult child; a trusted friend. They are less apt to be swayed by emotion-manipulating pitches and listen to the unvarnished facts. If they say your observer can’t stay — they may falsely claim it’s for privacy reasons — consider that the biggest red flag of all.