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Red flags
- Upfront fees before you have a written offer from your lender
- Guarantees that your loan will be modified or foreclosure stopped
- “Stop talking to your lender” or “stop paying your mortgage”
- Send your payments to us instead of your servicer
- Sign over your deed or add someone to your title “temporarily”
- Pressure to act immediately or sign blank or unread documents
- “Government-approved” or “HUD-affiliated” claims from private companies
- Forensic loan audits sold as a way to force a modification
- Leaseback or buy-back offers where you sell the home and rent it back
- Surplus fund recovery companies charging large percentages after a foreclosure sale
Legitimate free help
- Your servicer (loss mitigation department)
- HUD-approved housing counselors: hud.gov/counseling or 800-569-4287
- Legal aid organizations
- State homeowner assistance programs (verify on your state’s .gov site)
- VA loan technicians for VA loans: 877-827-3702
Protect your documents and title
- Never sign documents you don’t understand; get a counselor or attorney to review.
- Sign up for property fraud alerts if your county recorder offers them.
- Keep copies of everything and don’t give your online servicer login to others.
If you’ve been scammed
- Stop payments to the scammer and contact your bank.
- Call your servicer to explain and ask about options.
- Check your deed with the county recorder.
- Contact legal aid quickly.
- Report to the FTC (ReportFraud.ftc.gov), the CFPB, your state attorney general, and local police.
How common scams work
Advance-fee loan modification: a company promises to negotiate with your lender for an upfront fee, then does little or nothing. Meanwhile, you fall further behind.
Payment diversion: the scammer tells you to send mortgage payments to them while they “negotiate,” and keeps the money.
Deed transfer (“rescue”) schemes: you sign documents that transfer ownership, often disguised as refinancing paperwork. You may be allowed to rent back your own home until you’re evicted.
Leaseback / buy-back: you sell your home to an investor with a promise that you can buy it back later on terms that are impossible to meet.
Forensic audit scams: companies sell expensive “audits” claiming technical violations will force your lender to modify or cancel your loan.
Fake government programs: websites or callers claim to be affiliated with HUD, FHA, or a “federal mortgage relief program.”
Surplus fund recovery: after a foreclosure sale, companies offer to recover “excess proceeds” for a large percentage—money you can often claim yourself.
What the law says
Federal rules (Regulation O, the Mortgage Assistance Relief Services rule) generally prohibit for-profit companies from charging fees for mortgage relief until you’ve accepted a written offer from your lender, and require specific disclosures. Many states add their own foreclosure-rescue laws. Attorneys are exempt only in limited circumstances.
Protect older relatives
Older homeowners with significant equity are frequent targets. Encourage family members to:
- Never sign documents without a trusted reviewer
- Sign up for property fraud alerts with the county recorder
- Contact a HUD-approved counselor before responding to offers
- Report suspected exploitation to Adult Protective Services
Where to verify
- HUD-approved counselors: hud.gov/counseling or 800-569-4287
- Your state attorney general and state banking or mortgage regulator
- Your servicer (use the phone number on your mortgage statement)
Frequently asked questions
Is it legal to charge upfront fees for loan modification help?
Generally no. Federal rules prohibit most for-profit mortgage relief companies from collecting fees until you’ve signed a written offer from your lender that you accept. Attorneys are exempt only in limited circumstances.
What is deed theft?
A scheme where someone gets a homeowner to sign over the deed—often disguised as a refinance or “rescue” paperwork—then takes the equity, sells the home, or evicts the owner. Older homeowners and heirs are frequent targets.
What if I already signed something?
Contact legal aid or an attorney immediately, notify your servicer, check your county property records for recorded deeds, and report to the FTC and your state attorney general. Some transactions can be undone, especially if done quickly.
Sources and verification
Use these sources to check program rules. Funding, openings, and local procedures must be confirmed with the agency handling your application.
Update note (2026-10-01): Replaced a missing source link with an official program page or governing regulation. This was a source-link update, not a complete review of every claim.
- Mortgage relief scamsFederal Trade Commission
- Report fraudFederal Trade Commission
- Find a housing counselorU.S. Department of Housing and Urban Development
Found a changed rule or a broken link? Report a correction for this guide.