Law Offices of Charles A. Maglieri
Free Consultations

How can you recognize a foreclosure rescue scam?

When you are having severe financial difficulties, possibly including the threat of foreclosure, in Connecticut, it can feel like you are drowning. An offer of help paying off your debts and preventing foreclosure may seem like a lifeline. Unfortunately, foreclosure rescue scams are prevalent, and those who run them are attempting to take advantage of your panic and desperation in order to make money off you. If you fall for one of these scams, you may end up in even worse financial trouble than you were in to begin with. 

People who run foreclosure rescue scams are adept at making the offer sound like the solution to all your problems, and it can be easy to fall for their tricks. However, if you keep a cool head and look out for warning signs that the deal may be too good to be true, you can avoid becoming a victim. 

According to Making Home Affordable, a joint effort between the U.S. Departments of Housing and Urban Development and the Treasury, one of the most blatant signs that a foreclosure rescue program may be a scam is if the organization charges you an upfront fee for its services. The government knows that you are already having difficulty making your mortgage payments and therefore makes it illegal to charge you advance fees for mortgage modification in most instances.

Do not trust any third party that claims to pre-approve or guarantee your application for a mortgage modification. Only your lender has the authority to do that. Be suspicious of any third party claiming to have direct contact with your mortgage lender. 

Be on the alert for communications that appear to be from your mortgage lender but ask you to send payments to an alternate location and/or contact. 

An offer of a HAMP modification is one of the most subtle warning signs. This was indeed once a legitimate federal program to help people modify their mortgages for a more affordable monthly payment. Unfortunately, the program closed as of December 31, 2017, and the government is no longer providing HAMP modifications. Therefore, anyone who offers you one is definitely running a scam. 

The information in this article is not intended as legal advice but provided for educational purposes only.

No Comments

Leave a comment
Comment Information

Discuss Your Case With A
Respected Bankruptcy Attorney

Contact my office to discuss your debt relief needs directly with me as your lawyer. I offer a free initial consultation to all new clients where you can learn more about your legal options and what I can do to help you. I am available during regular business hours and by appointment at other times. You can reach me by phone at 860-242-0574 and 860-952-3674 or via email.

My law firm is a debt relief agency as so designated by Congress in the year 2005. I help people file for bankruptcy relief under Title 11 of the United States Code, known as the Bankruptcy Code.

Schedule A Free Consultation

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Email Us For A Response

Bloomfield Office
34 Jerome Avenue
Suite 203
Bloomfield, CT 06002

Phone: 860-541-5407
Phone: 860-242-0574
Fax: 860-243-0106
Map & Directions

Marlborough Office
9 Austin Road
Suite 201
Marlborough, Connecticut 06447

Phone: 860-541-5407
Fax: 860-243-0106
Map & Directions