Foreclosure Scam
As the old saying goes, if it sounds too good to be true, it probably is. That’s good to keep in mind if you decide to seek assistance in avoiding foreclosure. The reality is that there are no quick fixes for a foreclosure action, but there are plenty of questionable people or companies offering to “rescue” you from foreclosure.
Foreclosure or mortgage scams involve someone posing as a foreclosure or mortgage expert who makes promises or guarantees to 'save' your home or lower your mortgage, usually for a fee. These scammers lead you to believe that they have direct contact with your mortgage provider.
Be wary of anyone who claims they can “fix” the problem; always check credentials before entering into any type of legal or financial agreement.
Remember, contacting your lender at the first sign of trouble is your best defense against falling victim to foreclosure scams.
Loan Modification Scam Resources
Each of these agencies has videos and resources to help you recognize a foreclosure or mortgage scam, report it, and seek assistance.
U.S. Department of the Treasury’s Office of the Comptroller of the Currency
Tips for Avoiding Mortgage Modification Scams
Consumer Fraud Awareness and Prevention Resources
U.S. Department of Housing and Urban Development (HUD)
Helping Americans Prevent Loan Scams
How to Spot a Housing Scam
Federal Trade Commission Scam Warnings
Visit the consumer alerts section of the FTC website for recordings, videos and blogs regarding current foreclosure scams.
Florida Attorney General’s Office
The Consumer Protection Division with the Florida Attorney General is where you can report scams, including foreclosure scams, by calling 1-866-NO-SCAM (1-866-966-7226)
File a Complaint
HUD Approved Housing Counselors
A recurring theme throughout this website, and others like it, is to call your lender at the first sign of trouble. A good next step is to consider contacting a housing counselor approved by the Department of Housing and Urban Development (HUD).
HUD-approved counselors are trained in identifying foreclosure options and can assist in creating a strategy for working with your lender. In addition to foreclosure actions, HUD-approved housing counselors have expertise in buying a home, renting, dealing with credit issues, and relocating after a foreclosure.