When you fall behind on your mortgage, it can feel like you’d try anything to make it stop. Scammers know that. Because foreclosure notices are public record, they know exactly who’s struggling, and they show up with letters, calls, and even knocks on the door.
Here are the six red flags I tell every homeowner to watch for.
1. Guarantees
“We guarantee we can stop your foreclosure.” “We’ll cut your payment in half.” No one can guarantee either. Your lender decides whether to approve a modification or a short sale, and legitimate professionals say so plainly.
2. Upfront fees
Be very cautious of anyone who wants money before doing any work, especially by cash, wire transfer, or gift cards. Free help is available from HUD-approved housing counselors.
3. Pressure to act now
“You have to sign today.” “Don’t talk to your bank, we’ll handle everything.” High pressure is how scams work. A real professional will give you time and encourage you to stay in contact with your lender.
4. Signing over your deed
One of the oldest and most damaging scams: they ask you to transfer your title “temporarily” so they can “save” the home, sometimes promising you can rent it back. Never sign over your deed to anyone promising to rescue you from foreclosure.
5. Fake officials
Official-sounding names, fake government logos, or a “special federal program” that you have to pay to join. Government programs don’t charge you to apply.
6. Secret “insider” deals
Claims of special connections with banks or judges, or refusing to put anything in writing. If it isn’t in writing, it isn’t real.
Where to get real help
- Your lender: keep the lines of communication open and ask for loss mitigation.
- HUD-approved housing counselors: free help reviewing your options, 800-569-4287.
- Washington Homeownership Hotline: 877-894-4663.
- Report scams to the FTC at reportfraud.ftc.gov or the CFPB at consumerfinance.gov, and to the Washington Attorney General’s Office.
Get a free second opinion
If someone has contacted you with a “rescue” offer and something feels off, call or text me at 253-247-2245 before you sign anything. I’ll give you an honest second opinion at no cost, whether or not you ever work with me. Learn more about your options here.