Last reviewed: 3 October 2026
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Foreclosure rescue scams checklist
Scams aimed at homeowners who are behind on payments often copy government names and logos. This checklist gathers the warning signs the CFPB and FTC list, and says where to get real, free help.
What this term means: Foreclosure rescue and loan modification scams promise to stop a foreclosure or change your loan terms, then take money or your home. A servicer is the company you pay each month. For what foreclosure involves, see our guide to judicial and nonjudicial foreclosure. The CFPB says a mortgage assistance or foreclosure relief scam could cost you your home.[1]
Warning signs: the CFPB’s list
The CFPB says you might spot a scam if the scheme does any of the following.[1]
- Tells you to stop making mortgage payments. The CFPB says doing that can hurt your credit score and limit your options.[1]
- Charges up-front fees.[1]
- Asks you to make your payments to someone other than your lender or servicer.[1]
- Tries to get you to sign over title to your property, sometimes called a “rent to buy” scheme.[1]
- Pushes you to sign papers or contracts you do not understand.[1]
- Pressures you to act immediately.[1]
- Says it is doing a “forensic audit” of your loan.[1]
The CFPB also says criminals often use mail or email with designs, emblems, logos or names that look or sound like government agencies.[1] It says real government officials never ask for payment to help you.[1]
Common scam stories: the FTC’s list
| Type | What the FTC says scammers do |
|---|---|
| Demanding payment | They demand payment up front, before you get any services. The FTC says that is illegal and a warning sign.[2] They may want payment only by cashier’s check, wire transfer or mobile payment app, because it is hard to get the money back.[2] |
| Phony counseling | They say they are housing counselors, lawyers or from the government, tell you not to contact your lender, and may tell you to pay them instead of your lender.[2] The FTC says the scammer takes the money and never pays the lender, so the loan goes into default.[2] |
| Forensic audits | They say a “forensic loan audit” will help you avoid foreclosure or lower what you owe. The FTC says scammers cannot promise it will get you a loan modification or other relief.[2] |
| Rent-to-buy | They ask for the deed to your home and say you can rent it and buy it back later. The FTC says transferring the deed does not transfer the mortgage, so you still owe the mortgage payments.[2] |
| Equity skimming | They offer to buy your home and let you get it back later. The FTC says that after you transfer the deed, the scammer can rent the home out while the lender goes ahead with the foreclosure, and you are still responsible for the unpaid mortgage.[2] |
| “Rescue” loans | They offer a “rescue” loan and hand you a stack of papers to sign quickly. The FTC says a document in the stack may give them the deed in exchange for the loan.[2] |
| Mass joinder lawsuits | Some firms send flyers urging you to join a “mass joinder lawsuit” and charge up-front fees. The FTC says mass joinder lawsuits are not class actions and are not likely to help you save your home.[2] |
Your rights under the MARS Rule, as the FTC describes them
The FTC says the Mortgage Assistance Relief Services (MARS) Rule makes it illegal for a company to charge you until it has given you a written offer for a loan modification or other relief from your lender and you accept the offer.[2] It says the company cannot tell you to stop talking to your lender, and you always have the right to contact your lender directly.[2] The FTC says lawyers can ask for an up-front fee under the MARS Rule only if they meet conditions, including being licensed in your state, supplying real legal services, and keeping your money in a client trust account.[2] Our guide to the MARS Rule (Regulation O) covers the rule itself.
Where the sources say to get real help
- Contact your mortgage servicer or lender immediately, even if foreclosure has started.[2]
- Talk to a HUD-approved housing counselor. The CFPB says counselors can help you work with your lender, organize your finances, understand your options and find a solution.[1] See how to find a HUD-approved housing counselor.
- The CFPB lists the HOPE Hotline, which offers advice from HUD-approved housing counseling agencies, at (888) 995-HOPE (4673), 24 hours a day, 7 days a week.[3] The FTC page, dated September 2022, gives the same number as the help line for its Making Home Affordable website.[2]
If you think you were scammed
The CFPB says if you think you have been scammed, report it immediately.[1] The FTC says to report a mortgage relief scam to the Federal Trade Commission and to your state attorney general.[2] The CFPB says you can submit a complaint online or by phone at (855) 411-CFPB (2372).[1]
How to verify this yourself
Read the CFPB page in the reference list and the FTC page it cites; they are the source for every statement above. If someone offers you a new loan, you can check whether the individual loan originator appears in the free federal license database: see our NMLS license guide. For a lawyer, the FTC says to call your state bar or check its website to see if the lawyer has had trouble. The Register page explains how we check loan originators, at category level; it is not a list of foreclosure-help companies, and a company missing from it is not a warning sign. Our published standard sets out the method.
What this page does not cover
This page is general information, not legal advice. It does not say that any named company is a scam. It does not replace talking to a housing counselor or an attorney about your own case, and it does not list state foreclosure deadlines. The FTC page is dated September 2022 and the CFPB scams page was last modified 4 June 2025; rules and contact details can change. This page was last reviewed 3 October 2026.
Your next step
Before you pay or sign anything, call your servicer and arrange a no-cost meeting with a HUD-approved housing counselor. Keep every letter you receive. Return to the Mortgage help library for related guides.