Scam Prevention

Protect yourself and your home. Scammers target struggling homeowners — knowing the warning signs can save you from losing thousands of dollars or your property.

🚨 The #1 Rule

Never pay someone who guarantees
they can stop your foreclosure.

Legitimate housing counseling is available at no cost. Call 1-800-569-4287 to speak with a HUD-approved counselor.

Fake Mortgage-Relief Companies

Scammers pose as mortgage-relief specialists, promising to negotiate with your lender or stop your foreclosure — for an upfront fee. Legitimate HUD-approved housing counselors provide this assistance at no cost.

🚩 Red flag: Anyone who demands payment BEFORE providing mortgage-relief services.✅ Call a HUD-approved housing counselor at 1-800-569-4287 — it's free.

Upfront-Fee Scams

A company or individual tells you they can secure a loan modification, grant, or foreclosure rescue — but you must pay first. Once they have your money, they disappear.

🚩 Red flag: Requiring payment before any service has been provided.✅ Never pay for mortgage assistance in advance. Free help is available.

Deed-Transfer Schemes

Someone offers to 'help' by having you sign over your deed to them, promising you can stay in the home and buy it back later. In reality, they take your home and evict you or sell it.

🚩 Red flag: Anyone asking you to sign over your deed or title.✅ Never transfer your deed to a third party promising to 'help.'

Fake Government Grants

Scammers claim you qualify for a government grant — sometimes calling it a 'Obama grant,' 'Biden grant,' or 'COVID relief' — and ask for a processing fee or your bank information.

🚩 Red flag: Government grants never require processing fees or bank account info upfront.✅ Real government grants are listed at grants.gov. Never pay for 'grant processing.'

Fake Loan-Modification Guarantees

A company guarantees they can get your mortgage modified for a fee. No one can guarantee a loan modification — approval is always up to your servicer and investor.

🚩 Red flag: Anyone who guarantees a specific outcome from your mortgage company.✅ Your servicer considers modifications at no cost. A counselor can help you prepare.

Pressure To Stop Paying Your Mortgage

Some scammers tell you to stop communicating with your mortgage company and send payments to them instead. They pocket your money while your home goes into foreclosure.

🚩 Red flag: Anyone who tells you to stop talking to your mortgage company.✅ Always communicate directly with your servicer. Send payments only to your servicer.

Fake Legal Assistance

Someone claiming to be an attorney or legal service offers to handle your foreclosure for a fee. They may not be licensed, or may file paperwork that delays but doesn't resolve the situation.

🚩 Red flag: Verify any attorney with your state bar association before paying.✅ Check attorney licenses at your state bar's website. Legal aid may be available for free.

Rent-to-Buy Scams

You're offered a rent-to-buy or lease-to-own arrangement on a home the scammer doesn't actually own. You pay fees or rent and the scammer disappears.

🚩 Red flag: Deals that seem too good to be true on properties where ownership is unclear.✅ Always verify property ownership through county records before signing anything.

Quick Safety Checklist

✓ Never pay an upfront fee for mortgage-relief or foreclosure-prevention services
✓ Never sign over your deed or title to anyone offering 'help'
✓ Never stop communicating with your mortgage company
✓ Never send mortgage payments to anyone other than your servicer
✓ Verify any 'attorney' or 'counselor' with your state bar or HUD
✓ Genuine government grants do not require processing fees
✓ If it sounds too good to be true, it probably is

If you suspect you've been targeted by a scam, report it to the FTC at ReportFraud.ftc.gov or call 1-877-FTC-HELP, and contact your state attorney general's office. If you signed documents, consult a licensed attorney immediately.

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