Foreclosure Relief Scams via Email
How fraudulent emails targeting homeowners in foreclosure offer loan modification and relief services that collect upfront fees and sensitive financial documents but deliver nothing.
Part of: Foreclosure Relief Scams
Last reviewed: 9 June 2026
Foreclosure filings are public record in most US states, and email addresses can often be matched to homeowners through data broker services that aggregate public record data. This means fraudulent foreclosure relief emails can be genuinely targeted — arriving at homeowners whose notices of default have recently been filed — with a level of personalisation that makes them feel like a response to a real situation rather than a mass-market scam.
An email that arrives during the stressful early weeks of a foreclosure process, correctly naming the property address or lender, and offering a plausible path to keeping the home, can bypass the scepticism a homeowner might otherwise apply. The document collection that follows — tax returns, pay stubs, bank statements — provides a comprehensive identity theft package in addition to any fees collected.
This guide covers how to identify a fraudulent foreclosure relief email and the free, legitimate resources that should be the first call for anyone facing foreclosure.
How this scam works on email
An email arrives addressed to the homeowner by name and references their property or general area, the name of their mortgage servicer, or the existence of foreclosure proceedings. It describes a mortgage relief company or law firm with a track record of stopping foreclosures and securing modifications, and offers a free initial consultation followed by a retained representation fee if the homeowner proceeds.
After the initial consultation — conducted by phone or a subsequent email exchange — a retainer or processing fee is collected by card or bank transfer. The homeowner is then asked to submit comprehensive financial documentation. The promised modification process never begins, the servicer is not contacted, and the company becomes unresponsive after the fee is collected.
Some emails advise the homeowner to stop contacting their servicer directly and to redirect all payments to the relief company. Following this advice accelerates the foreclosure and may result in the loss of the home entirely.
Common red flags
- Email requests an upfront fee before any written offer from the lender has been received
- Advice to stop contacting your mortgage servicer directly
- Request to send mortgage payments to the company rather than the lender
- Email references your foreclosure before you have sought help anywhere — suggesting use of public records targeting
- No verifiable licence as a housing counsellor, attorney, or mortgage professional in the email or linked website
How to protect yourself
- Contact a HUD-approved housing counsellor free of charge by calling 1-800-569-4287 or visiting hud.gov/findacounselor
- Understand that charging an upfront fee for foreclosure assistance is illegal under the FTC MARS rule
- Continue communicating directly with your servicer's loss mitigation department — do not follow advice to stop
- Never submit tax returns or bank statements to an entity you have not independently verified as licensed
- Verify any counsellor or attorney through your state's bar association or housing finance agency
How to report it
- Report to the FTC at reportfraud.ftc.gov — the MARS rule prohibits upfront fees
- File a complaint with the Consumer Financial Protection Bureau at consumerfinance.gov/complaint
- Report to your state's Attorney General consumer protection office
- If documents were submitted, place a fraud alert with the major credit bureaus immediately
Frequently asked questions
How do fraudulent relief companies know I am in foreclosure?
Foreclosure filings (notices of default, lis pendens) are recorded as public documents in most counties. Lead-generation services compile and sell these lists, which is why homeowners often begin receiving targeted relief offers shortly after a notice is filed.
What is a HUD-approved housing counsellor and how are they different?
HUD-approved counsellors are certified non-profit advisors who provide free or very low-cost guidance to homeowners. They have a legal duty to act in your interest rather than a financial incentive to place you with a specific programme. Call 1-800-569-4287 to find one.