The rule that catches most scams
Federal Regulation O covers any paid service that offers to stop or delay a foreclosure, or to get you a loan modification, forbearance, short sale or deed in lieu. A company covered by it may not ask for or take any fee until you have signed a written agreement with your lender or servicer that includes the relief the company got for you.
When it brings you an offer, it must tell you on a separate page that you can accept or reject it, and that you owe nothing if you reject it.
Warning signs
- Asking for a fee before you have a written offer from your servicer.
- Asking for payment by wire, cashier's check or a payment app.
- Telling you to stop talking to your servicer, your lawyer or a housing counselor. A covered company is not allowed to say this.
- Telling you to send your mortgage payments to them instead of your servicer.
- Asking you to sign over your deed, or to sign papers you have not read, to "save" the home.
- Promising results, or saying they are part of a government program or approved by your lender.
- Offering to "recover" leftover money from a foreclosure sale for a percentage of it. In most states you can claim surplus funds yourself; see your state's page.
What a legitimate company has to tell you
Ads and messages from a mortgage relief company must say that it is not associated with the government, that its service is not approved by the government or your lender, and that your lender may not agree to change your loan even if you use the service. If it tells you to stop paying your mortgage, it must also warn that you could lose your home and damage your credit.
Lawyers are treated differently
A lawyer licensed in your state who helps you as part of practicing law is exempt from most of the rule. To take money up front, the lawyer must put it in a client trust account. Ask any lawyer for a written fee agreement, and check their license with the state bar. We list license-checked foreclosure lawyers by city.
Free help that is not a scam
HUD-approved housing counseling agencies may not charge for foreclosure counseling. Call (800) 569-4287. Your state's legal aid office is also free if you qualify. Many states have their own foreclosure consultant law with extra rules; your state's page describes it.
Where to report a scam
- The FTC at ReportFraud.ftc.gov.
- The CFPB at consumerfinance.gov/complaint or (855) 411-2372.
- Your state attorney general, who can sue under the federal rule. Your state's page links to the office.
How much time do you have? It depends on your state.
See the foreclosure timeline, deadlines and free local help for the state where the home is.
Common questions
A company says it can stop my sale if I pay today. Is that legal?
If it is not your lawyer, it cannot take a fee until you have signed an agreement with your servicer based on an offer it obtained. A demand for payment today to stop a sale is one of the clearest warning signs. Call a HUD-approved counselor or legal aid instead.
Is it a scam if a company contacts me after my foreclosure became public?
Not always, but foreclosure filings are public records and many solicitations follow them. Check whether the company asks for money up front, tells you not to contact your servicer, or wants your deed. Any of those is a reason to walk away.
Keep reading
- What to do firstThe earlier you act, the more options you have. These are the first six things to do, in order, whether you are about to miss a payment or are already a few months behind.
- A sale date is setA sale date means time is short, not that it has run out. Each option below has its own cutoff, so the order you act in matters. Start today.
- Your federal rightsFederal rules (Regulation X) set the floor in every state. They do not force your servicer to approve any option, but they control when it can start a foreclosure and how it must handle your application.
- Help by loan typeYour servicer collects the payments, but the rules for what it can offer you come from whoever owns or insures the loan. Find that out first.
- Taxes after foreclosureThe IRS treats a foreclosure as a sale, and forgiven debt is usually income. The main home exclusion many people relied on has expired for most 2026 cases, but insolvency and bankruptcy exclusions still apply.
Sources
- 12 C.F.R. § 1015.2, what counts as mortgage assistance relief (eCFR)
- 12 C.F.R. § 1015.3, prohibited representations (eCFR)
- 12 C.F.R. § 1015.4, required disclosures (eCFR)
- 12 C.F.R. § 1015.5, ban on advance fees for mortgage relief (eCFR)
- 12 C.F.R. § 1015.7, attorney exemption (eCFR)
- FTC: Mortgage relief scams
- FTC: ReportFraud.ftc.gov
- CFPB: Submit a complaint
- HUD Handbook 7610.1 (March 2026), housing counseling fees