Mortgage modification / foreclosure rescue scam

Mortgage modification scams target homeowners in distress — typically behind on payments or already in foreclosure. A "rescue" company promises to negotiate with the lender, stop foreclosure, or modify the loan terms for an upfront fee. Variants escalate to convincing the homeowner to sign over title "temporarily" with a promised rent-back arrangement that never materializes.

Real loan modifications go through your actual lender or a HUD-approved housing counselor — both free. The Federal Trade Commission's MARS rule explicitly prohibits charging upfront fees for mortgage assistance.

This scam tends to spike during economic downturns and after natural disasters when foreclosure rates rise.

• Upfront fee required for "rescue" or "negotiation."
• Promise to stop foreclosure quickly.
• Asks you to stop paying your mortgage and "route payments through us."
• Requests you to sign over title or quit-claim deed.
• Says your lender "won't talk to you, only we can negotiate."
• Mailers reference your specific foreclosure case (public records).
• Door-to-door solicitation after a missed payment.
• Insists on cash or wire transfer for fees.

1. Contact your lender directly. They have loss-mitigation departments specifically for this. Real modifications happen through your lender.
2. Find a HUD-approved housing counselor at hud.gov/findacounselor. Their service is free.
3. Never pay upfront for mortgage assistance. It's illegal under MARS.
4. Never sign over your deed to a "rescue" company.
5. Contact your state attorney general for verified housing-rescue assistance programs.

• Stop further payments and signings immediately.
• Talk to a real estate attorney without delay. Some signed deeds may be reversible.
• File complaints with the CFPB, FTC, HUD, and your state AG.
• Contact a HUD-approved counselor to assess your real options with the lender.
• Document everything — every paper, every email, every phone call.
• Keep paying your mortgage if at all possible (or work with the real lender on forbearance).

• Do not pay upfront fees for mortgage modification or foreclosure rescue.
• Do not sign over your deed or title to a "rescue" company.
• Do not stop paying your mortgage based on a rescue company's advice.
• Do not assume your lender won't work with you — they'd usually rather modify than foreclose.

• FTC: reportfraud.ftc.gov — the broadest US fraud intake; reports flow to thousands of law-enforcement agencies.
• FBI IC3: ic3.gov — the right destination when the scam is internet-enabled (phishing, BEC, romance, crypto).
• CFPB: consumerfinance.gov/complaint — for complaints about banks, money transmitters, payment apps, credit cards, debt collection.
• IdentityTheft.gov — if any identity information (SSN, driver's license, account credentials) was shared.
• Your bank or payment platform. Call the number on the back of your card or use the app's in-product help. Time matters — wires can sometimes be recalled within hours; ACH and Zelle are harder but worth trying.