Mortgage-Relief / Foreclosure-Rescue Scam
Companies promise to stop foreclosure or modify your mortgage for an upfront fee, take the money, and leave you closer to losing your home — sometimes tricking you into signing over the title.
Think a message like this reached you? You can check it right now.
What this scam is
Homeowners behind on payments are targeted with promises to stop foreclosure, get a loan modification, or 'save your home' for a large upfront fee. Charging advance fees for mortgage-relief services is illegal, and these operators often do little, tell you to stop contacting your lender, or trick you into signing documents that transfer your home's title or rent it back to you. The upfront fee and any title transfer are the harm.
What it usually looks like
- Promises to stop foreclosure or modify your loan.
- Large upfront fees before any results.
- Advice to stop talking to your lender.
- Documents that transfer your deed/title.
Common warning signs
- Upfront fees for mortgage relief (illegal).
- 'Guaranteed' foreclosure prevention.
- Being told to stop contacting your servicer.
- Requests to sign over your title.
Example wording scammers use
“We guarantee to stop your foreclosure — pay the $2,500 fee and we'll handle your lender.”
“Sign here to transfer your home temporarily and we'll rent it back to you.”
These are illustrative examples written by ScamSplain, not real messages.
What the scammers want
- Upfront fees.
- Your home's title.
- To exploit fear of foreclosure.
What to do
- Never pay upfront for mortgage relief; it's illegal to charge before results.
- Contact your loan servicer and a HUD-approved housing counselor (free) directly.
- Never sign documents transferring your title to a 'rescuer.'
- Get independent legal advice before signing anything.
What to do if you already responded
- Contact your servicer and a HUD-approved counselor immediately.
- If you signed title documents, consult a real estate attorney fast.
- Report to the CFPB and reportfraud.ftc.gov.