If you get offers for mortgage-relief services from solicitors asking for an upfront fee, you’re almost certainly dealing with a scammer.
“Hoosiers need to be aware that it’s illegal for companies to charge you upfront for helping you find ways to pay your mortgage,” Attorney General Todd Rokita said. “Don’t fall victim to fraudsters trying to take advantage of your concerns about foreclosure or falling behind on payments.”
Indiana has ranked near the top in the nation for foreclosure rates, making the Hoosier State a prime target for these scammers.
Scammers often give themselves away with these red flags:
- They tell you to stop communicating with your lender. (You always have the right to contact your lender directly to discuss free payment assistance options that may be available to you.)
- They insist you pay them only by cashier’s check, wire transfer or a mobile payment app. (These methods make it much harder to get your money back.)
- They try to convince you to transfer the deed to your home to them or to a “rescue” company.
Important note for government-backed loans:
If your loan is guaranteed or insured by the government — including Federal Housing Administration (FHA), Veterans Affairs (VA), U.S. Department of Agriculture/Rural Housing Service, or conventional loans backed by Fannie Mae or Freddie Mac — your mortgage company is required by federal law to review your loan for free alternatives to foreclosure. These options can include loan modification agreements, repayment plans or forbearance.
You never need to pay a third party for these services. Contact your lender or a free HUD-approved housing counselor directly.
If you believe you have been a victim of a mortgage relief scam, you should report it to the Attorney General’s Office at https://www.indianaconsumer.com or to the Federal Trade Commission at https://reportfraud.ftc.gov.