Avoid Loan Modification & Mortgage Rescue Scams


Don't Be A Victim
Beware of Loan Modification & Mortgage Foreclosure Rescue Scams


Foreclosure notices appear in newspapers and court records. Some people may try to take advantage of you by contacting you with special offers, giving you false information or charging you for services. Most HUD-approved housing counselors provide free or low-cost counseling.  Do not agree to work with a counselor who collects a fee BEFORE providing any services or who accepts payment  only by cashier's check or wire transfer.   Read on for warning signs and tips to avoid being a victim.


Rescue Scam Prevention Resources


Click on the links below to view information.

A Message from The Federal Trade Commission
Un Mensaje de La Comisión Federal del Comercio
Avoid Being a Victim
Avoid Any Person or Company That...
Report Suspected Fraud and Scams


A Message from The Federal Trade Commission

Real People, Real Stories

(In English, three minute runtime)

Source: The Federal Trade Commission








Un Mensaje de La Comisión Federal del Comercio

Personas Reales, Problemas Reales

(En español, tres tiempo de ejecución de minuto)


Source: La Comisión Federal de Comercio




Avoid Being A Victim:


  • CAREFULLY REVIEW all offers to refinance or consolidate your credit card debts with your mortgage.
  • DO NOT PAY high interest rates and large fees on any offer. There should never be a fee for assistance with or information about any government program or to negotiate with your lender.
  • BEWARE of any person or organization that asks you to pay an upfront fee in exchange for a counseling service or modification of a delinquent loan. Do not pay – walk away!
  • BEWARE of anyone who says 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.
  • NEVER MAKE YOUR MORTGAGE PAYMENTS TO ANYONE ELSE other than your mortgage company without their approval - ask for proof.
  • DO NOT sign any documents without reading them first.  Many homeowners think that they are signing documents for a new loan when, in fact, they are transferring title to a new owner. Talk to a housing counselor or lawyer BEFORE you sign anything.
  • DO NOT transfer title or sell your house to the foreclosure rescuer.


Avoid Any Person or Company That:


  • Guarantees to stop the foreclosure process – no matter what the circumstances
  • Instructs you to NOT contact your lender, lawyer or housing counselor.
  • Collects a fee before providing you any services.  This practice is illegal in Michigan under the Credit Services Protection Act.
  • Encourages you to lease or rent your home so you can buy it back over time.
  • Tells you to make your mortgage payments directly to it, rather than to your lender.
  • Offers to fill out paperwork for you.
  • Tells you to transfer your property deed or title to it.
  • Pressures you to sign paperwork that you have not had a chance to read thoroughly or that you do not understand.


Report Suspected Fraud and Scams


If you think you have been a victim in a foreclosure rescue scam, call the Better Business Bureua in your area, file a complaint with the Michigan Attorney General’s Consumer Protection Division online or call toll-free: 1-877-765-8388 or make a report at www.loanscamalert.org