Rescue Scams

A foreclosure "rescue" scam could cost you your home. Don’t sign anything until you have done your homework first. Call a certified housing counselor or your lender and ask them about the deal before making a commitment.

Just remember, if something sounds too good to be true, it probably is

Scenarios to watch out for

The scammer who never follows through to save your home, but charges very high fees for basic phone calls and paperwork that you could do. As a result, you receive little or no help in stopping the foreclosure from taking place. Remember, you can talk to a certified housing counselor for free, who can advise you on the best steps to take when trying to save your home from foreclosure.

The scammer "bails you out" by helping get rid of your house. The way the scammers get rid of your house varies, but each method ends with you surrendering the title to the house on the promise that you can stay on as a renter and buy the house back once things have been "fixed." The scammer usually sets the rental price at a level that you cannot afford, and then they evict you for failure to pay the rent. In the end, of course, you can't buy the house back and the scammers get most, if not all, of your equity.

The scammers will tell you that you are signing documents for a new loan that will solve your problems. In reality, you are signing forged documents that will give the scammers ownership of your home. To make matters worse, you will still owe for the mortgage but will no longer have the home.

Here’s how they find you?

A scammer finds homeowners in need of "help" through local public-foreclosure notices.

They advertise their service by dropping a card or flier on your doorstep or calling you. They also post ads in public places. You should ignore posters, fliers and especially handwritten notes offering help for your foreclosure.

How they hook you?

How they hook you?

At the first meeting, the scammer builds up your hopes and promises a fresh start. There are also empty promises made such as that they will sell the house back to you at some point.

The scammer will recommend that you break off contact with the lender and any counselor that you may have been working with. This is the exact opposite of what you should be doing. If you are in a foreclosure, you need to be in contact with your lender to find out what you can do to fix the problem.

These scams are often perpetrated by people of similar ethnic, racial, religious or age groups.

What to do if you get caught in a foreclosure rescue scam?

If you get caught in one of these scams it is imperative that you contact a consumer protection lawyer right away. An attorney can assist you as you navigate your way through hearings with enforcement agencies, eviction hearings and in lawsuits.

If you receive a scam in the mail, contact the Post Master General’s office.