The emotional stress of identity theft remains one of the most distressing aspects of this heinous crime. People who have had their lives turned upside down by identity theft often suffer from different levels of emotional distress after the crime. The Identity Theft Resource Center offers a number of tips and warning signs of emotional stress for victims to be aware of after identity theft:

Recovering from identity theft is a long and arduous process. The ITRC recommends that you start the healing process as soon as possible. Tips for identity theft recovery include moving forward, recognizing that you are not alone and asking for support from family and friends.

The emotional stress of identity theft will quite likely include feelings of powerlessness. It’s important to recognize your emotions, acknowledge them and then to be consistent and to stay organized with your goals, says the ITRC. Accentuating the positives in your life and taking time for you are important parts of the identity theft recovery process. Any opportunity that you have to reward yourself for all of your hard work and time spent regaining your identity should be welcomed.

Get more tips for dealing with the after effects of identity theft in the Credit Bloopers blog.

A new home foreclosure scam has resulted in a number of arrests in California. The homeowners scam was perpetrated by a foreclosure firm based in San Diego. Here’s how the foreclosure scam went down:

The Federal Land Grant Company told homeowners that they could pay $10,000 for a land grant to protect themselves from foreclosure. Many of the homeowners who were caught up in the foreclosure scam are Hispanic and don’t speak English. The company told unsuspecting homeowners that if they transferred the homes back to the government, they could get their homes back and would not be foreclosed upon.

Deeds to hundreds of homes were lost in the foreclosure scams. In addition to paying $10,000 and signing over their deeds, homeowners were also scammed into paying rent to stay in their homes, say reports. Several arrests have been made and the company’s accounts have been frozen while the investigation continues.

Avoid homeowners scams related to credit repair and foreclosure by never paying a large fee upfront for services. Fees to help you save your home or to repair your credit should be nominal, since legitimate companies are usually nonprofit. And, fees should only be charged once the work has been started.

Learn more about home foreclosure scams in the news in the Credit Bloopers blog.

If you’re a renter and the home you occupy is foreclosed upon, how will this affect you? What you need to know about renters and foreclosure proceedings:

If your landlord is experiencing foreclosure problems, you will eventually have to move. The home foreclosure process takes time, so it may be up to several months before you have to go. But keep in mind, only the landlord has to honor your lease. The company foreclosing on the property doesn’t have to keep the property as a rental, regardless of the terms of the lease.

Landlords aren’t required to notify tenants about home foreclosures. Your only notice may be when the financial institution posts a notice on the property stating the home is in foreclosure. And yes, rent is still due until the home is foreclosed upon.

Before you try to rent a home, make sure your credit report is up to snuff. Landlords often run credit reports and if you have problems in your credit history, they have the right to charge you an increased security deposit. Transferring your debt to a low interest credit card or a balance transfer credit card can help you pay off high interest debt more quickly while improving your credit rating. 

College students are among the fastest growing group of people who file for bankruptcy, say news reports. It’s more bad news for college students, who will also face tightened student loan requirements and concerns with managing an increasing amount of credit debt this year.

College Students Face Diminished Eligibility for Student Loans

Kids trying to get a traditional student loan to pay for college, like a Stafford loan, may not be eligible under tightened loan requirements if they have issues with credit. A number of lenders have already pulled out of the student loan market. Of the lenders who still offer student loans, tightened loan requirements for college students mean that any student with a poor credit score (less than 650) may be unable to qualify for a student loan. In addition, college students at two-year schools, kids studying at online schools and students at some community colleges may not be eligible for student loans this year.

College Students and Credit Debt Management

College students need to manage credit cards responsibly to avoid bankruptcy. Moving high interest loans and credit card debts to a low interest credit card or a balance transfer credit card can save you money and help you avoid bankruptcy when you’re in college. Managing credit debt is key for college students in need of student loans. In addition to traditional student loans, personal loans obtained through a bank to help pay for school will be less expensive for applicants with good credit. A good credit score is also important post-graduation, as hiring companies often pull credit to get a big picture of prospective new hires.