Homeowners behind on mortgage payments are targeted by scammers who promise to stop foreclosure. Many take fees or title and leave the owner worse off.
Common scams
- Upfront fees for loan modification services.
- Requests to sign over the deed or "temporarily" transfer title.
- Sale-leaseback offers that strip equity.
- Telling you to stop talking to your lender.
- Guaranteed results.
Red flags
- Pressure to act immediately.
- Anyone asking you to sign documents you do not understand.
- Requests to send mortgage payments to them instead of your lender.
- Advance fees that violate federal rules for mortgage relief services.
Safer steps
- Contact your lender or servicer about hardship options.
- Call a HUD-approved housing counselor, which is generally free.
- Read all notices and respond to deadlines.
- Get a lawyer to review any proposal involving your deed.
- Report scams to your state attorney general and the Federal Trade Commission.
If you were scammed
Gather documents, report the fraud and talk to a lawyer or legal aid quickly. Some deeds can be challenged, but acting fast matters.
Frequently asked questions
Can anyone legally charge upfront for foreclosure help?
Federal rules restrict advance fees for mortgage relief services. Be suspicious of any.
Where can I get free help?
HUD-approved housing counseling agencies and legal aid organizations.