April 02, 2020

Avoiding Foreclosure Rescue Fraud

During times of distress, homeowners should be aware of a common fraud known as "foreclosure rescue fraud."

In this scheme, someone may offer false promises of being able to save your home from foreclosure or guarantee a loan modification with a reduced mortgage payment. Common elements of this fraud include the fraudster:

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  • Requiring you to sign the title to your home to them.
  • Asking you to sign unfamiliar documents and/or share your personal information.
  • Charging you rent to stay in your home and /or potentially promising you that you can purchase your home back when your financial situation improves.

Loan modification scams may operate similarly as fraudsters collect an upfront fee and promise to work with your loan servicer to obtain a modification with a reduced payment on your behalf.

If you have been contacted by someone other than your loan servicer (the company listed on your mortgage statement) who is offering to provide mortgage assistance, do not provide your information.

To help avoid fraud:

  • Spot imposters. Scammers can make any name or number appear from anywhere in the world either via phone or internet. 
  • Be suspicious. If someone has contacted you asking for personal or sensitive information, do your homework to verify the validity of the request by researching the person or the company.

If you have been contacted by someone claiming to represent Freddie Mac, report it here. Freddie Mac will never reach out to offer a refinancing opportunity or new loan over the phone. 

If Freddie Mac owns your mortgage and you are a homeowner that has been affected directly or indirectly by COVID-19, mortgage relief options are available