Avoid Foreclosure Scams
When you fall behind on payments, scammers may show up fast — calling, texting, or knocking on your door. They sound friendly and claim they can “save your home” or “stop the sale immediately,” but their goal is usually to take your money or your house.
Knowing how to spot these scams can protect your home and keep you from losing thousands of dollars.
Common Foreclosure Scams
1. “Pay Us Upfront — We’ll Save Your Home.”
Scammers promise to stop your foreclosure if you pay a fee. Once you send money, they disappear or make things worse.
👉 Real help never starts with an upfront payment.
2. “Sign Your House Over — We’ll Handle It.”
They say they’ll work things out with your lender while the home stays in your name. But after you sign over the deed, they own it — and you’re left with the debt.
👉 Never sign your deed unless you fully understand it
3. “We’re Working with the Bank or Government.”
Scammers often pretend to be from your lender, HUD, or a “federal program.” They use official-looking logos and phone numbers to trick you.
👉 Call your lender or HUD directly to confirm before trusting anyone.
4. “We’ll Handle the Paperwork — Stop Talking to Your Bank.”
They tell you to avoid your lender while they “negotiate” for you. In reality, they want to keep you in the dark while deadlines pass.
👉 Always stay in contact with your lender — it’s your best defense.
5. “Guaranteed to Stop Foreclosure.”
No one can guarantee that. Scammers use this phrase to sound confident and rush you into paying fast.
👉 Real companies explain options — not guarantees.
How to Protect Yourself
Don’t pay upfront. Real foreclosure help doesn’t charge you first.
Only use licensed professionals. Check credentials for attorneys, lenders, and counselors.
Work through trusted channels. Call your lender, a HUD-approved counselor, or a verified title company.
Read before you sign. Don’t sign anything you don’t understand.
Watch out for pressure. Scammers push urgency; real help gives you time to decide