How to Spot Foreclosure Scams and Protect Yourself

by Molly Heyen

When homeowners fall behind on mortgage payments, they often become targets for scams disguised as help. These offers can look convincing, but they’re designed to take advantage of people under stress.

Recognizing the warning signs can help you protect your home, your finances, and your peace of mind.

Common Red Flags

“Pay us upfront, and we’ll handle everything.”
Reputable professionals do not charge upfront fees for foreclosure rescue or loan modification assistance.
“Sign your deed over—we’ll take care of it.”
Never sign ownership documents unless you understand exactly what they mean. Some scammers use this tactic to take control of your property.
“Stop talking to your lender.”
Anyone who tells you to stop communicating with your lender is not acting in your best interest. Staying in contact with your lender is essential to exploring legitimate solutions.
“We guarantee to save your home.”
No one can make that promise. Foreclosure outcomes depend on many factors, and anyone guaranteeing results should raise suspicion.

How to Protect Yourself

Work with licensed professionals. Always confirm that any real estate agent, attorney, or counselor you work with is properly licensed and in good standing.
Get everything in writing. Don’t rely on verbal promises. Review all documents carefully before signing.
Ask questions. A legitimate professional will take the time to explain your options and will never pressure you to make a fast decision.
Seek trusted guidance. If you’re unsure about an offer, speak with a HUD-approved housing counselor, attorney, or your lender directly.

Final Thoughts

When you’re facing financial stress, it’s easy to hope for a quick fix—but true help will always come from transparent, licensed, and ethical sources.

If you’re unsure whether an offer is legitimate or need a second opinion on your options, I can help you review it or connect you with trusted housing professionals.

Contact me if you want to discuss safe, realistic ways to protect your home and your next steps.