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• accepts payment only by cashier’s check or wire transfer
• tells you to make your mortgage payments directly to the business, rather than to your servicer
• guarantees to stop the foreclosure process – no matter what your circumstances
• tells you to file a bankruptcy petition without all the required forms
• instructs you not to contact your servicer, lawyer, or credit or housing counselor
• encourages you to sell your home to it and then lease it so you can buy it back over time
• tells you to transfer your property deed or title to the business
• offers to buy your house for cash at a fixed price that is not set by the housing market at time of sale
• offers to fill out paperwork for you
• tells you that it can do a “forensic loan audit” that may allow you to keep your house without paying
for it
• pressures you to sign paperwork that you haven’t had a chance to read thoroughly or that you don’t
understand
• tells you to ignore any foreclosure or eviction notices you have received
• is based out of state, especially in California or Florida

HOW SCAMS WORK

In today’s economy, foreclosure “rescue” firms and loan modification companies are abundant. Their
goal is to make a quick profit. They will use half-truths and outright lies to sell services that promise relief
and then fail to deliver.

Potential victims are easy to find. Foreclosure “rescue” companies use a variety of tactics to find
homeowners in distress. These include searching foreclosure notices in the newspaper and on the
Internet, as well as accessing public files at local government offices. They may also place television ads
and posters on telephone poles and bus stops. They may also send out personalized letters to the
homeowners and post signs in their neighborhoods.

The scam artists use simple and straightforward messages, like:

“Stop Foreclosure Now!”
“We guarantee to stop your foreclosure.”
“Your file has been approved for a loan modification.”
“Keep your Home. We know your home is scheduled to be sold. No Problem!”
“We have special relationships within many banks that can speed up case approvals.”
“We Can Save Your Home. Guaranteed. Free Consultation.”
“We stop foreclosures every day. Our team of professionals can stop yours this week!”

These companies often encourage homeowners to stop working with their servicer and housing
counseling agency. They tell homeowners they will take care of everything.

If you suspect a scam, contact the Washington Attorney General’s Office, the Washington Department of
Financial Institutions, Northwest Justice Project, or a housing counselor (see Tools for the Homeowner
section for the contact information).

January 2020 | Page 55