DENVER -- The state's top prosecutor and a lawmaker unveiled a plan Thursday to crack down on scams that can cost Coloradans their homes under the guise of helping them avoid foreclosure.

"Foreclosure rescue" scams are growing in Colorado, along with creative mortgage financing that can lead to foreclosures when homeowners fall behind on payments, Attorney General John Suthers said.

The scams cost tens of millions of dollars in losses, he said.  Suthers announced plans for a bill aimed at preventing consultants who promise to help homeowners avoid foreclosure from ending up owning their clients' homes.

In foreclosure rescue scams, a perpetrator might promise to take care of a homeowner's debt in exchange the property titles, then raise the rent and evict the client.

Suthers formed a task force in July to examine ways to curb fraud. Residents have made at least 200 complaints against a half dozen businesses and individuals who could face charges, said Deputy Attorney General Jan Michael Zavislan.

The task force also recommended legislation to require foreclosure consultants and equity investors to have detailed, written contracts with homeowners, who could cancel the contracts.

Violations could result in up to $25,000 fine and a year in jail.  "We're all very aware of the fact our real estate market has been a viable part of the economy for a number of years," said Rep. Tom Massey, a real estate agent and co-sponsor of the bill. "We're grateful for that, but as with every profession ... we have to legislate toward the few who take advantage of the process."

Sen. Jennifer Veiga, D-Denver, will co-sponsor the bill with Massey, R-Poncha Springs.

Suthers previously has said he was supporting proposals to require background checks and registration for mortgage brokers and require brokers to post $100,000 bonds.

Alaska and Colorado are the only states that don't regulate mortgage brokers, Suthers said.

Budgetary concerns are one reason legislators are not yet seeking licensing of brokers, Massey said.

The task force, whose members include prosecutors and public trustees, has developed brochures that Suthers said homeowners facing foreclosure will receive along with the first notice of foreclosure. The brochures tell where to seek help and how to avoid scams.

The FBI has listed Colorado as among the top 10 fraud "hot spots" in the country, Suthers said. Examples of fraud include inflated property appraisals and falsified documents to obtain loans for people who would otherwise not qualify to borrow money, Suthers said.

Suthers said recent Hispanic immigrants and the elderly are among common victims.

Colorado ranks highest among states when it comes to interest-only mortgages, according to the Federal Deposit Insurance Corp. Such mortgages forgo principal payments, but interest rates can sometimes rise dramatically.