A national coalition of local, state, and federal government agencies, nonprofit organizations, and financial institutions gathered at Los Angeles’ City Hall Monday afternoon to launch a nationwide public education campaign against foreclosure rescue scams.

According to Eileen Fitzgerald, COO of NeighborWorks America, one of the groups spearheading the operation, the national foreclosure rate has reached an all-time high of 7.97 percent, and millions more foreclosures are expected in coming years. As the foreclosure rate grows, she says, more and more homeowners are being deceived by scam artists who prey on their fears.

“This campaign is based on the belief that knowledge is the best defense,” Fitzgerald said, “which is why the campaign equips homeowners with the tools they need to minimize their risk and stop scammers in their tracks.”

Los Angeles is one of several metropolitan areas in California to consistently rank among cities with the highest foreclosure rates. Even with stronger city ordinances designed to increase protections for the city’s homeowners, Los Angeles Mayor Antonio Villaraigosa says too many residents are still losing money to scam artists who promise big but do little to save their homes.

Monday’s announcement in L.A. was the first of several kickoff events scheduled to spread the word about the Loan Modification Scam Alert campaign rollout in major cities across the country.

NeighborWorks America will coordinate the nationwide effort through its 235 community-based affiliates and other local, state and national partner organizations, including HUD, the Federal Trade Commission, the U.S. Treasury, Fannie Mae, Freddie Mac, and the Lawyers’ Committee for Civil Rights Under Law.

Hollis McLoughlin, SVP of external relations at Freddie Mac, says the GSE strongly supports the new anti-fraud initiative. “Freddie Mac applauds this new coalition for standing together against con artists who specialize in bilking the public with empty promises of quick fixes to mortgage problems,” McLoughlin said. “We look forward to working with … the other coalition members to close the door on mortgage fraud.”

The coalition partners said their aim to reach thousands of distressed homeowners in hundreds of communities at high risk for fraud activity. The campaign will target all audiences, but its resources are focused sharpest on those groups that have already seen high levels of scam activity, including seniors, Hispanics, African Americans, and Asian Americans.

“Borrowers must avoid any individual or firm that asks for a fee in advance, guarantees a loan modification, or tells you to pay them instead of paying the mortgage,” said Lori Gay, president and CEO of campaign partner Los Angeles Neighborhood Housing Services, Inc. “Only a lender can guarantee a loan modification and they do not charge,” Gay stressed.

The coalition has designated November as “National Loan Modification Scam Awareness Month” and will promote a variety of special events and initiatives throughout the month. In the coming weeks, the campaign will also travel to Miami and Columbus.