Avoiding Mortgage Fraud

You should be aware that foreclosure rescue and mortgage modification scams exist. Scammers make promises they cannot keep, such as guarantees to save your home or lower your mortgage, for a fee. Scammers also may pretend they have direct contact with your mortgage servicer when they do not. 

One of the easiest ways to determine if someone is trying to scam you is if they ask you for money.

Tips to Avoid Scams:

• Beware of anyone who asks for a fee in exchange for a counseling service or modification of a delinquent loan.

• Never make a mortgage payment to anyone without your mortgage company’s approval.

• Watch the Foreclosure Rescue Scams Video on the FTC ‘s YouTube Channel.

• The U.S. Department of the Treasury’s Office of the Comptroller of the Currency provides tips and materials to help homeowners avoid mortgage modification and foreclosure rescue scams.

• The Loan Modification Scam Prevention Network is a national coalition of governmental and private organizations created by Fannie Mae, Freddie Mac, NeighborWorks America™ and the Lawyers’ Committee for Civil Rights Under Law to provide resources to educate homeowners about the dangers of loan modification scams and support federal, state and local efforts to combat these scams. If you believe you have been the victim of a scam, you can report the scam through the campaign’s online complaint form.

• The Financial Fraud Enforcement Task Force maintains a wide list of resources and information to help find and report suspected cases of financial fraud.