Loan Modification and Debt Relief Scams

Criminals target people with significant debt, claiming they can negotiate with creditors to settle or reduce your repayment obligations. Beware of their promises to:

Reduce your auto loan payments and help prevent repossession.
Remove negative information from your credit report, including legitimate information.
Stop a foreclosure or modify your mortgage loan.

They may ask you to:

pay upfront fees,
give partial interest in your home,
sign over the deed to your home,
sign papers that you may not understand,
encourage you to make payments to someone other than your lender,
stop making payments to your lender, and/or
release your personal and financial information over the phone.

Criminals will claim to help you if you follow their instructions, but they won’t deliver on their promises.

Protect yourself and your assets and remember these signs of a scam:

Someone who reaches out to you unexpectedly
Pressure to share your personal or financial information
An offer to negotiate a loan modification for a fee
A deal that is too good to be true
Someone who encourages you to apply for a credit privacy number (which is illegal)
A recommendation to dispute accurate information on your credit reports
They tell you to stop communicating with your lenders or stop making payments toward your loans

Housing Help

If you need help, contact a housing and credit counselor. Counselors are professionally trained to help you assess your situation and evaluate the best financial options. For assistance, please contact:

You can also visit Homeowner-Help.org. Sponsored by the Finance of America Foundation, it’s a free online tool that connects homeowners with resources and assistance for facing financial hardships.

If you or someone you know spot a scam, please report it to police and the FBI Internet Crime Complaint Center at IC3.gov.

Loan Modification and Debt Relief Scams

Housing Help

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