Do you know how to spot a SCAM?

To steer clear of loan modification scam artists, homeowners must know the signs of a loan modification scam, which include:

  1. A company/person that asks for a fee in advance to work with your lender to modify, refinance or reinstate your mortgage. They may pocket your money and do little or nothing to help you save your home from foreclosure.

  2. A company/person that guarantees they can stop a foreclosure or get your loan modified. Nobody can make this guarantee to stop foreclosure or modify your loan. Legitimate, trustworthy HUD-approved counseling agencies will only promise they will try their very best to help you.
  3. A company/person that advises you to stop paying your mortgage company and pay them instead. Despite what a scammer will tell you, you should never send a mortgage payment to anyone other than your mortgage lender. The minute you have trouble making your monthly payment, contact your mortgage lender.

These and other signs can be found on the Loan Modification Scam Alert campaign web site – – along with information on how to report a loan modification scam activity and where homeowners can find real help, free of charge, from HUD-approved nonprofit housing counseling agencies.  

About the Campaign
NeighborWorks America is coordinating the “Loan Modification Scam Alert” campaign nationwide through its 235 community-based affiliates and other local, state and national partner organizations, including the Department of Housing and Urban Development (HUD), the Federal Trade Commission, the U.S. Department of the Treasury, Fannie Mae, Freddie Mac and the Lawyers’ Committee for Civil Rights Under Law. For more information about the campaign, visit   

All national campaign materials urge homeowners who are contacted or deceived by a scam artist to report it immediately by calling 1-888-995-HOPE(4673) or visiting The hotline and Web site also connect homeowners to free guidance from a HUD-approved counseling agency.

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