Federal Deposit
Insurance Corporation

Tips for Avoiding Mortgage Foreclosure Rescue and Loan Modification Scams

Protect Yourself

Know with whom you are dealing
Before you hand over any money or provide any personal information, check out the company or person. You can check your local Better Business Bureau or state consumer protection office to see if the company or organization is legitimate and if any complaints have been filed.

Contact reputable non-profit housing or financial counselors, such as those you can find by contacting the:

• U.S. Department of Housing and Urban Development
  (HUD) at (800) 569-4287 or
  www.hud.gov/offices/hsg/sfh/hcc/hccprof14.cfm
• Homeownership Preservation Foundation at
  (888) 995-HOPE or
  www.995hope.org

Know what you are signing
Read and understand every document you sign. If a document is too complex, seek advice from a lawyer or trusted financial counselor. Never sign documents with blank spaces that can be filled in later. Never sign a document that contains errors or false statements, even if someone promises to correct them later.

Get promises in writing
Oral promises and agreements relating to your home are usually not legally binding. Protect your rights with a written document or contract signed by the person making the promise. Keep copies of all documents you sign.

Make your mortgage payments directly to your lender or the mortgage servicer.
Do not trust anyone else to make mortgage payments for you.

Never sign over your deed until you clearly understand what will happen to your rights to your home
Foreclosure scams often require you to “temporarily” sign over ownership of your home to another claiming it would be only as a means to help you.
Consult with a HUD-approved homeowner counseling agency.

Report suspicious activity to the Federal Trade Commission, your State Attorney General’s Office or your state and local consumer protection agencies. Reporting con artists and suspicious schemes helps prevent others from becoming victims.