What is a foreclosure rescue scam?

A foreclosure rescue scam is a fraudulent activity that capitalizes on people who are struggling with their mortgage payments and have received a foreclosure notice. It is an illegal scheme perpetrated by scammers who exploit borrowers in financial distress by falsely promising to help them avoid foreclosure, when in reality they end up getting scammed out of their money. In Florida, scammers use a variety of tactics to deceive homeowners facing foreclosure. They may advertise themselves as foreclosure consultants or lawyers, then ask the homeowner to pay an advance fee for their services. Once the homeowner has paid the fee, the scammer vanishes and the homeowner is still facing foreclosure. Many scams involve the scammer offering to buy the home, rent it back to the homeowner, and eventually return the homeowner’s original deed. In some cases, the scammer will keep the homeowner from defaulting on the mortgage by making a few payments on their behalf, but eventually, the homeowner loses the home to foreclosure. In Florida, no one is allowed to charge a borrower money for foreclosure avoidance services before those services are complete and the borrower has legally avoided foreclosure. Any fee to a foreclosure consulting business in Florida must be paid at the completion of services. Homeowners should also be wary of any company that requires an advance fee for services or promises to work with the mortgage lender to modify loan terms.

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What is a foreclosure rescue scam?

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