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Beware of Foreclosure Rescue and Loan Modification Scams

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Beware of Unethical Mortgage Foreclosure Rescue and Loan Modification Operations
Watch Out for the Common Foreclosure Rescue and Loan Modification Scams
Warning Signs
Protect Yourself
Caught in a Foreclosure or Loan Modification Scam?
General Resources
Foreclosure Prevention Homepage

Tips for Avoiding Mortgage Foreclosure Rescue and Loan Modification Scams
Warning Signs That You May Be Dealing With A Mortgage Foreclosure and Loan Modification Scam Operator

If The Company:

  • Demands a fee in advance. No legitimate organization that works with borrowers to avoid foreclosure will ever ask for money up front.
  • Makes unsolicited offers or “lofty” advertisements, claiming they can help save your home.
  • Offers to negotiate a loan modification for a fee.
  • Recommends you break off contact with the lender and any counselor that you may have been working with.
  • Advises you to stop making mortgage payments.
  • Tells you to send your mortgage payment to anyone other than your loan servicer.
  • Instructs you to transfer ownership of your property.
  • Makes verbal promises that aren’t put in writing.
  • Asks you to sign a document that has blank lines or spaces.




Last Updated 06/18/2009 communityaffairs@fdic.gov