INDIANAPOLIS -- Indiana Attorney General Steve Carter and Indianapolis Mayor Bart Peterson came out in strong support on Wednesday of recently passed legislation that cracks down on companies that prey upon homeowners threatened with foreclosure.

The scam involves homeowners paying a "foreclosure consultant" with hopes that the foreclosure can be stopped or delayed. The companies don't pay the mortgages and the homeowner loses the home and any fees paid to the consultant.

Indiana currently has the highest per capita rate of foreclosure in the U.S.

"Unfortunately, there are people out there who prey on those families who have fallen on hard times and are simply trying to save their houses," Carter said.

The new law requires further disclosure to inform homeowners about the service being purchased. It also allows the homeowner to back out of the deal within three days of signing and prohibits a company or individual from taking control of the property through power of attorney.

"These scams tear at the very fabric of our community, devastating homeowners and harming the stability and quality of life in our neighborhoods," Peterson said.

The not-for-profit organization Momentive Consumer Credit Counseling Service said Hoosiers have alternatives if facing foreclosure.

The organization helps educate consumers and assists prospective and current homeowners with information about home ownership.

Momentive can be reached at (866) 722-9248 or at www.momentive.org/info.