How to Avoid Foreclosure Scams When You’re Under Pressure

When you’re under the stress of foreclosure, the last thing you need is to fall victim to a scam. Unfortunately, dishonest individuals and companies often target homeowners during difficult times, making bold promises they can’t keep. Knowing what to watch out for can protect you from financial loss and further hardship.

Here’s how to stay safe and informed when seeking help with your property.

Know the Common Scams

Scammers often use urgency and fear to convince homeowners to sign over control or pay upfront for fake services. Here are some of the most common schemes:

• “Foreclosure Rescue” Offers: These promise to stop foreclosure immediately for a fee, but deliver little to no real assistance.

• Title Transfer Schemes: A scammer convinces the homeowner to sign over the deed under the promise of saving the home. This often results in the homeowner losing their property entirely.

• Fake Loan Modifications: Someone may claim they can modify your loan for a fee but never follow through with your lender.

• Phony Government Programs: Scammers may pretend to be affiliated with government foreclosure relief programs to gain your trust.

Red Flags to Watch For

Whether you’re contacted by phone, mail, or online, here are some signs that should raise concern:

• Requests for upfront payments before services are rendered

• Guarantees to “stop the foreclosure” regardless of your situation

• Pressure to act immediately or sign documents without reviewing them

• Instructions to make payments to someone other than your lender

• Refusal to provide written information or contact details

A legitimate housing advisor or real estate professional will never ask you to sign away ownership without fully explaining your options.

Take These Precautions

Protecting yourself from fraud means staying cautious and informed. Here are some steps you can take:

• Research anyone offering to help. Look them up with the Better Business Bureau or your local real estate licensing board.

• Consult a HUD-certified housing counselor. They offer free or low-cost assistance and are trained to help homeowners navigate foreclosure options.

• Do not sign documents you don’t understand. If you’re unsure, consult with an attorney or trusted advisor before proceeding.

• Never pay upfront for a loan modification or rescue service. Reputable professionals will explain their process and fees clearly—and will not ask for payment before any work is done.

Work With Trusted Professionals

The right support makes all the difference. Work with licensed professionals who are transparent about their credentials and offer clear, realistic options.

As a licensed real estate advisor, I’ve helped property owners explore their options and avoid making decisions they later regret. While I am not a financial advisor or attorney, I can connect you with trusted professionals and help you understand the real estate aspects of your situation.

You Don’t Have to Face This Alone

If you’re facing foreclosure, know that there are legal, trustworthy ways to find relief. Scammers take advantage of fear and isolation—don’t let them take advantage of you.

If you want a second opinion on something you’ve received or need help reviewing your options, feel free to reach out. I’m here to support you with honest information and a no-pressure approach.