Foreclosure Rescue & Mortgage Relief Scams
Mortgage hardship guidance focused on the actual servicer, loan program and next action—not foreclosure-rescue promises.
Upfront fees
FTC says the MARS Rule generally prohibits mortgage-relief providers from collecting fees before delivering an accepted written relief offer, subject to limited attorney conditions.
Communication
FTC says mortgage-relief companies cannot tell consumers to stop communicating with their lender.
Deed transfer
Pressure to sign over the deed is a major scam warning.
Government look-alikes
A 2026 FTC action alleged scammers used false CARES Act-related mortgage-relief claims.
No guarantee
No private company can guarantee a modification or foreclosure stop.
Action checklist
Call the servicer; identify the investor/agency; explain the hardship; ask what makes the application complete; save proof of every submission; open every letter; write down foreclosure and response deadlines; and contact a HUD-approved housing counselor. If a sale, lawsuit, bankruptcy issue or legal deadline exists, seek qualified state-specific legal help promptly.
Questions to ask the servicer
Who owns, insures or guarantees my loan? Which retention and disposition options are being reviewed? Is my application complete? What is missing? Is there a foreclosure sale date? Does review affect that date? If denied, what is the specific reason and is there an appeal or escalation path?
Official resources
- HUD — Avoiding Foreclosure
- HUD — FHA Loss Mitigation
- CFPB — Foreclosure / Loss Mitigation
- Fannie Mae — Payment Deferral
- Fannie Mae — Flex Modification
- Freddie Mac — Relief Options
- VA — Servicer Assistance
- VA — 2026 Partial Claim FAQs
- USDA — Guaranteed Loan Program
- FTC — Mortgage Relief Scams
Last reviewed September 15, 2026. Eligibility is loan-, investor-, servicer- and situation-specific. State foreclosure law varies.
What not to do
Do not ignore mail because you are embarrassed or expect the problem to resolve itself. Do not send mortgage payments to a third-party rescue company. Do not sign over title without independent advice. Do not assume a pending modification automatically stops foreclosure. Do not intentionally create a delinquency because someone online said it is required. And do not wait for a sale date before asking the servicer what documents are needed.
Build a written record
Keep the mortgage statement, hardship explanation, income and expense documents, every assistance application, every upload or fax confirmation, representative names, dates and call notes, written offers/denials, and every foreclosure notice. If the file becomes disputed or time-sensitive, a clean record helps a housing counselor, servicer escalation team or attorney understand what happened.