When you receive a notice of default, you become a target. Not just of the foreclosure process itself, but of people who make a living preying on homeowners in exactly your situation.
Foreclosure rescue scams are widespread, well-organized, and often convincing. Knowing what to look for is one of the most important things you can do to protect yourself and your equity.
Note: In an earlier post, we covered what a notice of default means and why it makes your situation public record. The moment that notice is filed, your name and address become available to anyone who wants to find it. That is when the calls and letters start.
The Most Common Foreclosure Scams
The Phantom Help Scam
Someone contacts you claiming to be a foreclosure specialist, loss mitigation expert, or housing counselor. They charge upfront fees, sometimes thousands of dollars, to negotiate with your lender on your behalf. After collecting the money, they do little to nothing, and by the time you realize it, you have lost both the fees and precious time on your timeline. Legitimate HUD-approved housing counselors do not charge for foreclosure counseling. If someone wants money upfront before doing any work, walk away.
The Deed Transfer Scam
Someone convinces you to sign your deed over to them, promising to let you stay in the home as a renter while they fix your credit and help you buy it back in a few years. What actually happens: they own your home. They can evict you whenever they want. The buy-back terms are almost always impossible to meet. Never sign your deed over to anyone you have not thoroughly vetted, with an attorney present.
The Fake Loan Modification Scam
A company claims they can get you a guaranteed loan modification for an upfront fee. They may even send official-looking documents with your lender’s logo. In reality, they have no relationship with your lender and cannot guarantee anything. Meanwhile, you have stopped making payments because they told you to, and the foreclosure has progressed further.
The Bait-and-Switch Sale
An investor presents you with one set of numbers verbally, then puts different, less favorable terms in the contract at closing. Homeowners who are stressed, rushed, and just want the situation to be over sometimes sign without reading carefully. Always read every document before you sign. Always.
Red Flags to Watch For
- Anyone who guarantees results before reviewing your situation
- Upfront fees before any work is done
- Pressure to sign quickly with no time to review
- Requests to make mortgage payments to them instead of your lender
- Anyone who tells you to stop communicating with your lender
- Contracts with blank spaces or terms that differ from what was discussed verbally
No Google Reviews? No Testimonials? No References? That Is Your Answer.
This is one of the simplest filters you have, and most people do not use it.
Before you work with any company or individual offering to help with your home situation, search them on Google. Not just the star rating. Read the actual reviews. Look for detailed, specific accounts from real homeowners who describe what happened, how they were treated, and what the outcome was. Generic five-star reviews with no detail are easy to manufacture. Genuine stories from real people are not.
If a company does not have a visible, verifiable Google presence with real reviews, that is a serious red flag. If their reviews are all vague or all posted within the same week, that is another one.
Go further. Ask them for references. Ask to speak directly with a homeowner they have worked with. A legitimate company will not hesitate. A scammer will have every excuse in the world for why that is not possible.
Also check the Better Business Bureau, search their company name alongside the word “complaint” or “scam,” and look up whether they are licensed in your state. It takes ten minutes and it can save you everything.
This Is Exactly Why We Want You to Choose Us
We are not asking you to take our word for it. We are asking you to verify us.
Look us up on Google. Read our reviews. You will find real homeowners, real names, real stories about what happened when they called us in some of the hardest moments of their lives. Ask us for references and we will give them to you without hesitation. Check us with the BBB. Ask us anything.
We have helped families keep their homes, sell with their dignity intact, walk away with money in their pocket, and start their next chapter with something real. We do not charge for our time. We do not pressure anyone into a decision. We give you the full picture and let you decide.
If someone is trying to help you with your home and they cannot pass the same test we just described, walk away from them and call us instead. We will be here.
Fill out the form below or reach out to us directly. Let us show you the difference.