Facing foreclosure is overwhelming. Scammers count on that fear and urgency to push quick “solutions” that cost you money, your identity, or your home.

Below are the seven most common foreclosure scams, clear warning signs for each, and safe alternatives you can pursue to protect yourself.

1. “We’ll Stop Your Foreclosure Today” Pay in Full Now-Fee Scams

What it is: Companies or individuals promise to stop foreclosure immediately if you pay a large upfront fee. After payment they vanish, do little, or perform worthless paperwork. 

Warning signs:

·       Demands large payment before performing any verifiable work and demands payment in certified funds or cashier’s check.

·       Guarantees they can stop
foreclosure regardless of your situation.

·       Asks you to sign over the deed or
requests a power of attorney.

Safe alternatives:

·       Contact your mortgage servicer
directly and document the conversation.

·       Seek help from a HUD-approved housing
counselor or certified foreclosure specialist such as UCMA before further delinquency.

2. Loan Modification Identity-Theft Scams

What it is: Scammers pose as modification processors and ask for extensive personal data, then use it to commit identity theft.

Warning signs:

·       Requests for full Social Security
numbers, bank PINs, or copies of identity documents over unsecured email or by phone.

·       Urges you to stop communicating
with your lender.

Safe alternatives:

·       Share sensitive documents only
through secure, verified channels.

·       Verify any company’s credentials
and never stop communicating with your foreclosure specialist, counselor or servicer.

3. Fake Escrow or “Mortgage Rescue” Schemes

What it is: Scammers set up bogus escrow arrangements or convince homeowners
to transfer title in exchange for promises to make payments or negotiate with
the lender.

Warning signs:

·       Requests to transfer title or sign
paperwork that changes ownership.

·       Offers to rent the home back to
you after “saving” it.

Safe alternatives:

·       Never sign away your deed or
transfer title without independent legal advice.

·       If selling or surrendering the
property is necessary, pursue a short sale or deed-in-lieu through verified
professionals and the lender.

4. Bogus Legal Filings and “Delay” Scams

What it is: Operators promise to file bankruptcy, injunctions, or obscure
legal documents to halt foreclosure quickly—often for high fees—without
delivering legitimate filings.

Warning signs:

·       Promises of instant stoppage
through unspecified legal tactics.

·       Vague or unofficial documents
presented as legal filings; advice to avoid contacting your lender.

Safe alternatives:

·       Consult a licensed foreclosure
attorney or a reputable housing counselor to verify legal strategies.

·       Request written fee agreements and
confirm filings with the county court or clerk.

5. Government Impersonation and Fee Scams

What it is: Scammers impersonate HUD, federal relief programs, or loan
servicers and demand fees or personal information to enroll you in
“assistance.”

Warning signs:

·       Unsolicited calls insisting you
must pay to receive government aid.

·       Caller ID spoofing or pressure to
act immediately.

Safe alternatives:

·       Government programs do not charge
upfront enrollment fees. Verify programs independently and refuse to provide
payment or sensitive information to unsolicited callers.

6. “Cash for Keys” and Lowball Buyouts

What it is: Predators offer quick buyouts or “cash for keys” deals that are
far below the property’s value or what a lender might accept in a short sale.

Warning signs:

·       Offers significantly below market
or lender-acceptable amounts.

·       Pressure to sign quickly or vacate
immediately.

Safe alternatives:

·       Compare offers to a short sale or
deed-in-lieu negotiated with the lender.

·       Consult a professional to evaluate
net proceeds, tax implications, and credit impact before accepting.

7. Document Forgery and Robo-Signer “Fixes”

What it is: Fraudsters propose forging, backdating, or altering mortgage or
court documents to “fix” a foreclosure—an illegal approach that can make your
situation worse.

Warning signs:

·       Suggestions to falsify signatures,
alter court records, or use “backdoor” fixes.

·       Any plan that requires you to lie
or submit false documents.

Safe alternatives:

·       Report suggestions of forgery to
the lender and seek legitimate legal counsel immediately.

·       Maintain a complete, unaltered
copy of all mortgage and court documents and share them only with verified advisors.

How to Protect Yourself Right Now

·        Never pay large upfront fees for foreclosure help.

·        Keep every written offer, contract, and communication; document all calls with names, dates, and case numbers.

·        Verify credentials: request written agreements, check professional licenses, and ask for references.

·        Don’t stop communicating with your lender unless directed by a verified counselor or attorney.

·        Use HUD-approved counselors, verified foreclosure prevention specialists, or licensed attorneys for guidance.

Quick Checklist Before You Sign or Pay

·        Did you verify the company’s credentials and licensing?

·        Is there a written contract detailing services and fees?

·        Have you confirmed the recommendation with a HUD-approved counselor or attorney?

·        Will you keep copies of all documents and communications? If you answered “no” to any, pause and seek verified professional help.

Closing

Scammers exploit fear and urgency. The best defense is calm, verifiable action: document everything, verify every advisor, and consult trusted housing counselors or attorneys before signing anything or paying high up-front fees. If you’re worried about a specific offer, get independent advice and prioritize solutions that keep you in control of your home and information.