Foreclosure Rescue Scam

Foreclosure rescue scams prey on homeowners who are behind on mortgage payments and desperate to avoid losing their homes. Perpetrators monitor public foreclosure notices and proactively contact at-risk homeowners, presenting themselves as distressed property specialists, housing counsellors, or rescue companies.

Common schemes include: charging upfront fees for loan modification services that are never performed or that could be obtained free through legitimate housing agencies; instructing homeowners to stop communicating with their lender and pay the 'rescue company' instead while the company pockets the money; and deed-transfer schemes where the homeowner is persuaded to sign over their property under the false promise they will be able to rent it back and repurchase later.

Legitimate foreclosure assistance is available through government-approved housing counsellors and non-profit agencies free of charge. Homeowners should be extremely cautious of anyone soliciting them after a foreclosure notice, charging upfront fees for loan modification, or asking them to transfer title to their property as part of a 'rescue' plan.