Mortgage and Foreclosure Fraud
Helping Oregonians Avoid Mortgage and Foreclosure Fraud
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Attorney General John Kroger has made it a priority to protect Oregon homeowners by aggressively pursuing companies and individuals who engage in loan modification and foreclosure rescue fraud, and other mortgage-related scams. These scams can include phony offers of counseling or help, cons where homeowners unknowingly sign away their home, and lease-to-own schemes where a scammer purports to sell a house and pockets all the payments.
File a complaint. If you think you have been victimized, or want to notify us about an individual, company or agency that may be engaging in mortgage or foreclosure rescue scams, complete a Consumer Complaint Form or call 877-877-9392.
Know your rights. Recent changes to Oregon law (Senate Bill 628) require your lender to inform you about mortgage modification options, and allow you to request good-faith negotiations which may help you avoid foreclosure. Click here to Get Help or call 877-877-9392.
Avoiding a Mortgage or Foreclosure Scam
Be alert. Beware of any counselor or company who:
- guarantees to stop the foreclosure process no matter what
- instructs you not to contact your lender, lawyer, or credit or housing counselor
- encourages you to rent your own home so you can buy it back over time
- tells you to make your mortgage payments directly to it, rather than your lender
- tells you to transfer your property deed or title to it
- offers to buy your house for cash at a fixed price that is not set by the housing market at the time of sale
- offers to fill out paperwork for you
Get it in writing. Your home is an extremely important asset, and it's ok to ask anyone you are working with to put a description of all services and promises in writing. Make sure you fully understand documents before you sign them, or you could inadvertently sign away your home to someone else.
Don't pay upfront. If a counselor demands that you make a payment before receiving services, or will only accept payment via cash, automatic withdrawal, cashier's check or wire transfer, be extremely suspicious. Make sure you know exactly what services you will receive before paying anything. Also, you do not have to pay thousands - or even hundreds - of dollars for mortgage counseling as HUD-approved counselors provide their services at little or no charge to you.
Make sure your counselor is HUD-approved. Scammers may contact you by mail, on the phone, online or in person, and sometimes try to appear associated with your lender or the government. The U.S. Department of Housing and Urban Development (HUD) has an easily searched list of approved counseling agencies. Ask your counselor if their agency is HUD-approved, and then double check for yourself. Visit the HUD website or call 877-483-1515 to find out if your counselor is HUD-approved.
Get Help
HOPE NOW is a joint effort by counselors, mortgage companies, and others designed to help homeowners in distress stay in their homes. The HOPE NOW website can help you locate free counseling help or assist you in contacting your mortgage company. Visit the HOPE NOW website or call 888-995-HOPE. The telephone hotline is staffed by HUD-approved credit counselors who can guide you through possible options.
The Oregon Department of Justice, along with other agencies such as the Oregon Division of Finance and Corporate Securities, sponsors free Home Ownership Preservation Events around the state. Get answers from government agencies, non-profit counselors, lawyers, and lenders about refinancing or modifying your loan, find out about new government housing programs, and get educated on avoiding mortgage and foreclosure rescue scams. For more information visit the DFCS website or call 541-774-4305.
Making Home Affordable is part of a federal plan to help homeowners keep their home, through refinancing of mortgages and avoidance of foreclosures. Visit the Making Home Affordable website for details.
Learn More From the Federal Trade Commission
Foreclosure Rescue Scams: Another Potential Stress for Homeowners in Distress
Online (w/video) | Download | Espanol (w/video)
Deceptive Mortgage Ads: What They Say; What They Leave Out
A Note to Homeowners
Mortgage Payments Sending You Reeling? Here's What to Do
Knee Deep in Debt
How to Talk the Talk: The Real Estate Marketplace Glossary
