U.S. consumer protection officials and state attorneys general are warning homeowners about scammers posing as "home savers" to defraud people facing foreclosure [1, 2].

These warnings come as fraudsters target vulnerable borrowers during periods of financial instability. By masquerading as legitimate experts, these individuals exploit the high stress associated with losing a home to steal money or equity from homeowners [1, 2].

According to officials, these self-proclaimed savers claim they can help homeowners avoid foreclosure through specialized programs or legal maneuvers [1, 2]. In reality, these schemes often involve charging upfront fees for services that are never delivered, or tricking homeowners into signing over the deed to their property [1].

This surge in fraudulent activity aligns with a rise in foreclosure filings across the United States [1]. The scams are particularly prevalent in states experiencing higher rates of property loss, where the desperation of borrowers makes them more susceptible to deceptive promises [1].

Consumer protection agencies said that homeowners should be wary of any service requiring immediate payment before providing a specific plan to save the home. Officials said that legitimate foreclosure assistance is often available for free through government-approved housing counselors [2].

To protect themselves, homeowners are encouraged to contact their mortgage servicers directly to discuss payment options. Attorneys general said that any offer promising a guaranteed way to stop a foreclosure should be viewed as a red flag [1, 2].

“Scammers are masquerading as “home savers” to exploit people facing foreclosure.”

The rise of 'home saver' scams reflects a predatory trend where fraudsters synchronize their efforts with macroeconomic shifts. As foreclosure rates increase, the demand for legitimate relief creates a market gap that scammers fill with deceptive services. This highlights a critical need for homeowners to rely on HUD-approved counselors rather than unsolicited third-party offers during financial crises.