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Department of Insurance, Securities and Banking

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Foreclosure Relief Scams are on the Rise (9/4/25)

CONSUMER ALERT  
 Don’t Get Duped: Foreclosure Relief Scams Are on the Rise  


If you’re behind on your mortgage, you’re a prime target. In April 2025, Washington, DC saw one foreclosure filing for every 3,939 housing units — a  reminder that scammers are circling when homeowners are most vulnerable.  

How the Scam Plays Out  

Fraudsters pose as your lender, a government agency, or a housing program. They may:  

  • Call, email, or show up at your door with “guaranteed” foreclosure prevention offers.  
  • Demand you pay them directly instead of your lender.  
  • Pressure you to sign over your deed.  
  • Ask for sensitive personal or financial information.  

Once they get what they want, they disappear — and you could still lose your home.  

Red Flags to Watch For  

  • Upfront fees for mortgage relief (illegal under federal law).  
  • Fake affiliations with HUD or your lender.  
  • Title transfer offers to “save” your home.  
  • Absolute guarantees to stop foreclosure.  
  • High-pressure deadlines to act immediately.  

How to Protect Yourself  

  • Verify help: Contact your lender or a HUD-approved housing counselor before signing anything.  
  • Never pay upfront for mortgage relief services.  
  • Keep your deed: You don’t need to give up ownership to get help.  
  • Protect your info: Don’t share SSNs, bank details, or mortgage info with unverified people.  
  • Get it in writing: Read every document carefully.

Stay email-smart: Don’t click suspicious links.  

Report Suspected Scams  
If you think you’ve been targeted:  
1. DISB Enforcement & Consumer Protection – 202-727-8000  
2. FBI Internet Crime Complaint Center – IC3.gov or 202-278-2000  
3. Federal Trade Commission – [email protected]