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Foreclosure Rescue Scams You Need to Avoid

by Dorota Trzeciecka on February 8th, 2010

You are facing foreclosure and are frantically looking for solutions to avoid it.  A stranger comes along and promises to save your home.  But, he says, the offer is only good if you sign the contract with him right there and then and pay him $5,000. One thing you can be sure of is that, if you hand over the money and sign that contract, you will never see the money, or the stranger ever again.   You will become a statistic, another victim of a foreclosure rescue scam. 

Here is how you can protect yourself from foreclosure scams:

  • Beware of people who pressure you to sign papers immediately, or who try to convince you that they can “save” your home if you sign or transfer over the deed to your house.
  • Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.
  • Try talking to your lender, HUD-approved housing counsel, or a lawyer, before contracting with any third-party company for rescue or modification services.
  • Beware of anyone who asks you to pay a fee in exchange for a counseling service or modification of a delinquent loan.  Assistance from an HUD-approved housing counselor is FREE. Fees in exchange for modification may only be collected AFTER services are completed.
  • Never make a mortgage payment to anyone, other than your mortgage company, without the mortgage company’s explicit approval.
  • Beware of home-sale contracts that do not formally release you from your mortgage.
  • Do not sign anything with blank lines or spaces.
  • Beware of those who are offering to pay arrearages on your mortgage  and take the house of your hands.
  • Above all, DO NOT PANIC – find out how much time you have before the lender forecloses on your home.

You may also want to visit Attorney General’s website for your state for types of foreclosures scams being prosecuted and a list of the companies engaging in such questionable business practices.   If you live in Florida go to

For more information on how to avoid foreclosure, contact me by phone at (305) 439-0464 or e-mail me at

From → Foreclosure