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Get Free Guidance →A company promises to negotiate with your lender and save your home. You pay fees upfront — sometimes thousands of dollars. They do little or nothing, eventually stop responding, and your foreclosure proceeds. This is the most common scam and specifically targets homeowners who feel overwhelmed by dealing with servicers directly.
A "rescuer" offers to buy your home, let you stay as a renter, and give you the option to buy it back later. You sign the deed over. The terms are impossible to fulfill, the "rescuer" sells or strips equity, and you lose the home entirely — often with no protections because you're now a tenant, not an owner. Some of these are structured to look like legitimate sale-leaseback arrangements.
No one can guarantee a loan modification. Servicers make those decisions, not third parties. Any company that promises a guaranteed outcome — especially before reviewing your documents — is lying. The FTC prohibits most companies from collecting advance fees for mortgage modification assistance.
A company prepares your modification application but also has you sign documents you don't fully understand. Those documents may transfer power of attorney, give them equity interest, or create obligations that persist even after the modification is approved or denied.
Operators pose as government agencies or claim affiliation with HUD, CFPB, or federal programs. They use official-sounding names, government-style logos, and mention real program names to create false legitimacy. Actual government agencies do not charge fees for assistance or cold-call homeowners about foreclosure help.
Some operators promise to use bankruptcy to permanently stop foreclosure, file repeatedly to delay the sale, and collect fees for each filing — without disclosing that repeated filings lose their protection and that bankruptcy has significant long-term credit and financial consequences.
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Contact Us FreeLegitimate loss mitigation companies work transparently with your servicer, explain clearly what they will and won't do, don't promise guaranteed outcomes, and don't ask you to sign over your home. The CFPB's guide to protecting yourself from foreclosure rescue scams is available at consumerfinance.gov.
If you've already paid fees to a company that disappeared or did nothing, or if you signed documents you don't fully understand:
Yes, in most cases. The FTC's MARS Rule prohibits most companies from collecting advance fees for mortgage modification or foreclosure prevention services before delivering results. Upfront fees are a major red flag.
A foreclosure rescue scam involves a company promising to save your home in exchange for fees, a deed transfer, or signing over power of attorney. Common varieties include phantom help scams, rent-to-own scams, and bait-and-switch modification schemes.
Legitimate companies don't guarantee outcomes, don't ask you to stop talking to your servicer, and don't ask you to sign over your deed. Check BBB profiles, look for verifiable reviews, and verify any licensing in your state.
File a complaint with the FTC at reportfraud.ftc.gov, the CFPB at consumerfinance.gov/complaint, and your state attorney general's office. Document everything and contact a HUD-approved housing counselor for legitimate help going forward.
No. The space includes both legitimate loss mitigation professionals and outright predators. Legitimate help focuses on working with your servicer, involves transparent contracts, and does not require upfront fees before any services are delivered.
We work transparently with homeowners to understand their real options. If you're not sure what your best option is, we offer free, no-obligation consultations. No pressure, no sales pitch — just honest guidance. Contact us today.
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