How to Identify Foreclosure Rescue Scams

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Foreclosure rescue scams are a serious problem in the mortgage industry today. With foreclosures on the rise, there are many scam artists out there that are trying to take advantage of the masses. Here are a few things to consider about how to identify foreclosure rescue scams and avoid them.

Unbelievable Claims

Many of these scam artists will make unbelievable claims when it comes to saving your home from foreclosure. They will say things like "We will stop foreclosure guaranteed!" or "We can save your home!" Most of the time, these claims are astronomical and unrealistic. If someone comes to you claiming that they can guarantee that they will be able to help you, you should start to become very skeptical about the process. Without looking at your situation first, there is no way for this individual to know if they can help you or not.

Upfront Fees

Many scam artists ask for upfront fees in return for saving your home. They claim that they have special relationships with lenders and they will be able to come to an agreement to keep you in your house. In return for doing this, they want you to send them a few thousand dollars. You send them the money and then you never hear from them again. After that, your mortgage remains in default and you end up losing your house anyway. If anyone is asking for money upfront before they do anything, you should completely avoid them. While there are some agencies out there that assist people in foreclosure, none of them want you to give them a check for $3000 upfront.

Giving Them Title

Many of these scam artists will ask you to sign over your title to them as part of their solution. For example, they might tell you to sign over the title to your house so that they can get someone with better credit to save the mortgage. You will then pay that person rent for a specific period of time until you can eventually buy the house back over a period of several years. This scenario might sound attractive to you because it keeps you in your home and helps you avoid going through foreclosure. However, in reality, you have just signed over the title to your property. The person that took your title can now take you out of the house or continually increase rent until you can no longer afford it. If anyone asks you to sign over your title to them, you should ask them to leave immediately.


Whenever you are approached by anyone that claims to be able to help you with your foreclosure, you need to do a substantial amount of research about them. Check with the Better Business Bureau in order to determine if this is a legitimate business that you are dealing with. You should also check online reviews to see if other people have been taken advantage of by this particular company.