Simply put – foreclosure rescue fraud happens when a company or person promises to help save your home from foreclosure, but is actually intent on stealing your home, most of the equity you have accumulated in your home, or a substantial amount of money.

There are several types of Foreclosure Rescue Scams you should be aware of:

  • Foreclosure Prevention Specialist – these are phony foreclosure counselors who may try to collect large sums of money but rarely provide any services.
  • Phantom Help – individuals who charge high fees for work the homeowner could do his or herself.
  • Lease/Buy Back – homeowners are deceived into signing over the deed to their homes.
  • False Bailout – the homeowner is led to believe that he or she can rent his or her home from the new owners and eventually repurchase the home.
  • Bait and Switch – the homeowner thinks he or she is signing new mortgage documents, but is actually signing over the deed to their home.
You should avoid any company that asks you to pay an up-front fee for its services, no matter what that fee is called. You should also avoid any company that promises you that it can save your home or get you a reduced mortgage interest rate. You can call the Attorney General Hotline at 1-866-966-7226 and check to see if there are any complaints.
No. Avoid any company that instructs you to stop paying your mortgage.
You should always attempt to negotiate with your original lender first, and you should re-contact them if you still need assistance. You should also file a complaint with the Attorney General’s Office.
No. The statute applies to ALL companies, regardless of where they are located, if they are assisting a consumer who owns real property in the State of Florida or if the companies are located in Florida.
Do not respond to any solicitation, either by mail or by telephone, which does not come from someone you already know and trust. These types of solicitations usually are from private, for-profit companies which are only looking to make money.
No. The Office of Financial Regulation has stated that loan modifications are not governed under their regulatory statutes. Consequently, even Florida licensed mortgage brokers are governed by Florida Statute 501.1377 and may not charge an application fee or any other upfront fee directly or indirectly.
No. Loan modification companies cannot charge any fee or secure payment for any service that has not been completed.