Common Scam Tactics

These are the two most common foreclosure scams that can be found online. A simple Google search for any number of foreclosure-related terms will result in literally hundreds of results of foreclosure scammers offering one or more of the following two foreclosure relief services. The services these companies provide can invariably be performed by the homeowners themsleves. There is abolutely no reason to pay a company hundreds or thousands of dollars to stop foreclosure when a homeowner is able to do it on their own for free or much cheaper than these scammers charge.

Pointless mitigation services

Many scam artists have found that the best way to take advantage of homeowners is to provide them with services that they would be better off doing themselves. A company calling themselves “loss mitigation experts” or “hardship program specialists” will never provide foreclosure victims with a service that they can not do on their own. Furthermore, the lender would much rather speak with the homeowners personally, rather than a loss mitigation company. It is the obligation of the homeowner to take responsibility for their loan and send money to pay the mortgage; the lender will not prefer to speak with anyone besides the actual homeowner when working out a repayment plan to stop foreclosure.

Case reviewers and consultants

This scam is one of the most devious out there, because these criminals will offer to review a homeowner's situation for an up front fee and will actually deliver on their promise. The catch, though, is that their review is 100% useless and their recommendations usually have nothing to do with the current foreclosure situation. Homeowners should absolutely read the agreement that they are being presented with before they allow a consultant to review the case and provide them with pointless recommendations. We have seen so-called “work agreements” that specify the case reviewer will do such worthless tasks as recommending improvements to the property, conducting and onsite walk through of the property, and helping the client clear up inaccurate credit report information. None of these actions have the first thing to do with helping a homeowner stop foreclosure and save their home. In fact, until a foreclosure victim has found a solution to foreclosure, they should not even consider improving the property. And if they have sent money to a consultant who has done nothing helpful, they should request a refund immediately.