What are mortgage loan modification scams?
Mortgage loan modification scams are schemes to take your money – often by making a false promise of saving you from foreclosure.
- Ask you to pay fees upfront to receive services
- Promise to get you a loan modification
- Ask you to sign over the title to your property
- Ask you to sign papers that you do not understand
- Say you should start making payments to someone other than your servicer or lender
- Tell you to stop making mortgage loan payments altogether
If anyone has made any of these requests or claims, you can report that company by submitting a complaint with the CFPB online or by calling (855) 411-CFPB (2372).
What a mortgage relief company must provide
Mortgage relief companies are not allowed to collect any fees until they have provided you with the following:
- A written offer from your lender or servicer that you decide is acceptable
- A written document from the lender or servicer describing the key changes to your mortgage that would result if you accept the offer
- A reminder that you have the right to reject the offer without any charge
If you are having trouble paying your mortgage
If you can’t pay your mortgage or are worried about missing a mortgage payment, you have options. The first thing to do is call your mortgage servicer. Learn the steps to take, relief options, and places to go to get help with your mortgage.
Use our checklist for more information on how to avoid foreclosure.
Where to get more help
HUD-Approved Housing Counseling Agencies. U.S. Department of Housing and Urban Development (HUD)-approved housing counseling agencies can discuss options with you if you’re having trouble paying your mortgage loan or reverse mortgage loan. This may also include forbearance or a modified payment program.
Attorneys. If you think you may have been a victim of a mortgage loan modification scam, you may also want to consult an attorney. There may be resources to assist you through your local bar association, legal aid, or if you are a servicemember, your local Legal Assistance Office.
State Attorney General. You can contact your state attorney general’s office for more information about state protections as well as file a complaint.