Foreclosure Scams

Information obtained from https://www.usa.gov/foreclosure

Scammers sometimes contact homeowners who are having trouble making their mortgage payments to offer them “help.” Criminals like this promise to help you keep your home or sell your home without having to go into foreclosure, for a fee — but they’re just out to take your money, not help you.
These scam operators find potential victims in several ways:

• Advertising online and in local publications
• Distributing flyers
• Contacting people whose homes appear in the foreclosure notices (they can easily find these notices online or in a local newspaper)
• Targeting specific religious or ethnic groups

Report Foreclosure Scams

• File a complaint by contacting the Federal Trade Commission (FTC).
• If the scam involves bankruptcy, contact a local U.S Trustee office.
• Get reliable foreclosure help and counseling through the government's Making Home Affordable program or find a government certified housing counselor near you. 
• Read more about foreclosure scams (PDF, Download Adobe Reader) and find numbers to call for assistance.

How to Protect Yourself

Do

Be aware of these tricks that scammers use:

• Offering to negotiate with your lender or act as an intermediary between you and your mortgage lender to refinance your loan
• Advising you that they can stop foreclosure by ”helping” you file for bankruptcy.
• Encouraging you to sign fake foreclosure rescue or mortgage documents
• Claiming that they can perform a forensic mortgage loan audit to help you hold onto your home
• Offering you fake legal help
• Learn about your legitimate government-approved mortgage and foreclosure help options.

Don’t

• Don’t send mortgage payments to any company that is not your lender.
• Don’t sign any documents without having them reviewed by a lawyer or independent expert.
• Don’t stop making mortgage payments.
• Don’t forget that real help from the government is always free.
• Don’t give anyone your personal information, Social Security number, or bank information without confirming their identity and that they represent a legitimate company.  
• Don’t fall for rent-to-buy schemes or other mortgage fraud schemes.