Homeowners facing the frightening threat of foreclosure have to be on the lookout for ripoffs.

A "mortgage rescue" company steps forward, claiming to be able to help you save your credit and your home. In some cases, the "mortgage rescue" company provides phantom help offering to work as an intermediary with lenders, collecting an upfront fee for services it never provides or for something that homeowners easily could have done on their own for free.

In other scams, the "mortgage rescuer" may offer to pay off the delinquent loan and allow homeowners to stay on as renters, with the possibility of buying the home back later. But the scam artist doesn't make the payments and homeowners, who have signed over their deed, end up losing the home and any equity they had in it.

"People who are facing foreclosure need to know there are reputable organizations and industry professionals who can help them turn things around," said Michael Golden, president of @properties and a member of the Chicago Association of Realtors. Remember: if a deal sounds too good to be true, it probably is.

"Every time there's a drop in the market, you're going to find all kinds of scam artists coming out of the woodwork," said Beth Llewellyn, CEO of the Partnership for HomeOwnership.

She is also is a U.S. Housing and Urban Development (HUD)-certified homeownership counselor with a dozen years of experience helping lower-income families achieve homeownership.

Llewellyn suggests that homeowners who find themselves falling behind on their mortgage payments contact their mortgage lender immediately to see if the loan can be restructured or refinanced. They should try to do this before they have been delinquent on their payments for three months and formal foreclosure proceedings have begun.

At-risk homeowners are encouraged to contact a HUD-certified housing counselor who can help walk them through their options. Reputable counselors can be found through the HUD Web site, www.hud.gov, or call (800) 569-4287. HUD-certified counselors also can be contacted through the Hope Now Alliance homeowner hotline at (888) 995-HOPE.

Troubled homeowners also might want to contact an attorney about their legal options or a local Realtor to get more information regarding fair market housing values.

Illinois did institute tougher guidelines on "mortgage rescue" companies with the Mortgage Rescue Fraud Act in 2007. The law requires that "rescue" companies give homeowners a written contract (which the homeowner can cancel at any time) listing the services the firm will perform before being paid.

In the case of a home sale, a written contract also is required and the "mortgage rescue" company must pay the homeowner at least 82 percent of the fair market value if the rescue fails.

"If homeowners believe they have been victims of a 'mortgage rescue' scam, there are places they can turn," said Golden. Homeowners can contact the Illinois Attorney General's Homeowners Referral Helpline at (866) 544-7151.

Free one-on-one consultations, workshops and seminars will provide opportunities to help home shoppers gain a better understanding of the lending process on Saturday during Mortgage Lending Day in Bronzeville.

Existing homeowners will learn about the Rescue Loan program and opportunities to refinance a subprime loan. These high-priced loans are frequently ARMs (adjustable rate mortgages) or interest-only mortgages.

Also, new 15- or 30-year, fixed-rate loans -- which reduce monthly payments and build equity while reducing the risk of foreclosure -- will be discussed.

"The current housing crisis is having severe implications on peoples' lives and on our communities," said Michelle Collins, director of mortgage lending at ShoreBank, the sponsor of the event.

"The ShoreBank Mortgage Lending Day offers the financial resources and information that builds successful homeownership and strong communities, which has been our mission for nearly 35 years," Collins added.

Everyone attending Mortgage Lending Day will be eligible for to a $500 raffle prize. Radio personality Leon Rogers will be broadcasting live on WGCI-FM (107.5). Free food and refreshments will be available.

Call (773) 420-HOME; www.sbk.com.

Prairie Crossing in north suburban Grayslake has been named one of the top 10 cottage neighborhoods in the country in Cottage Living magazine's new issue.

The publication cited Prairie Crossing's high-quality cottages (painted the earthy colors of the Midwestern prairie); a lake for swimming, fishing and ice-skating; and a charter elementary school housed in a historic schoolhouse.

The magazine also noted the development's historic-barn community center for parties and concerts; a farmers market selling organic produce and miles of trails winding through native prairie. About 60 percent of Prairie Crossing's 677 acres have been preserved as open land.

"This month, we prove that people-friendly communities aren't just relics of the past. They are the future," writes Cottage Living Editor-in-Chief Eleanor Griffin.