Avoid mortgage loan modification scams

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Millions of homeowners struggled to make their mortgage payments during the COVID-19 pandemic, and it’s important for all homeowners to know about mortgage loan modification scams and how to avoid them.

The Consumer Financial Protection Bureau wants to make people aware that mortgage loan modification scams are schemes to take people’s money – often by making a false promise of saving them from foreclosure. These so-called foreclosure or mortgage consultants often use public notices or lists of distressed borrowers purchased from private companies to find their targets. They may offer to “prevent” foreclosures or “rescue” desperate homeowners from foreclosure through advertising, email or phone calls, or in person.

Examples of scams related to mortgage modification and foreclosure prevention include, among others:

In foreclosure rescue and refinance fraud, scam artists offer to act as intermediaries between homeowners and lenders to negotiate…

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