From fake “foreclosure rescue” consultants to fraudulent title transfers, foreclosure scams cost Californians millions each year. Here’s what to watch for and how to report abuse.
1. The Reality of Foreclosure Scams
The California Department of Financial Protection and Innovation (DFPI) routinely warns homeowners about fraudsters exploiting financial distress.
Common scams include fake modification services, title theft, and “we’ll buy your home but let you stay” schemes.
2. Red Flags to Recognize
- Anyone demanding upfront payment for loan modification help (violates Cal. Civ. Code § 2944.7).
- Promises of guaranteed results.
- Requests to transfer title “temporarily.”
- Advising you to stop talking to your lender.
- Pressure to sign contracts you don’t understand.
3. Who You Can Trust
Only these entities are legitimate sources of help:
- Your mortgage servicer or trustee (verify via NOD).
- HUD-approved housing counselors.
- Licensed California attorneys (State Bar lookup).
- Nonprofit legal aid organizations.
Always verify a company’s license through DFPI or the California Department of Real Estate before paying anyone.
4. Reporting Scams
If you suspect fraud:
- File a complaint with DFPI (dfpi.ca.gov/consumers/)
- Report to the FTC’s Consumer Sentinel network.
- Contact your county district attorney’s real estate fraud unit.
When in doubt, talk to your lender—not a stranger. Real help never requires secrecy or upfront cash.
Not sure what the next step should be?
We help homeowners and Realtors understand available options.
