Housing Related Scams
Foreclosure Rescue Scams
Foreclosure is a when a bank or mortgage lender files a lawsuit to force the sale of a property. The bank does this to get back money owed when someone falls behind on payments. New York State has a network of not-profit organizations that provide free help to homeowners in foreclosure, and can negotiate with the lender.
Foreclosure rescue scam happens when a company promises to negotiate a loan modification for you but doesn’t. They usually charge fees first, promise great results, and offer a “money back guarantee.”
Other scams include:
- A lawyer who files a lawsuit without proof just to charge a fee
- Convincing a homeowner to transfer their deed to someone else
- Using fake documents to transfer property ownership.
How do I know if I can trust a mortgage assistance company?
If you are facing foreclosure, be aware of mortgage assistance companies that:
- Promise specific results
- Charge fees before they start your case
- Ask you to stop paying your mortgage and pay them instead
- Ask you to sign papers you don’t understand
- Ask you to give them (or someone else) your deed, or transfer ownership of your home
- Aggressively try to sell you their services
In New York State, it is against the law for mortgage assistance companies to charge fees before any work is done. And there is never a guarantee that you can get out of foreclosure.
Where can I get help that I can trust?
To get correct information and honest help, please visit HomeOwnerHelpNY.
What if I am a victim of a foreclosure scam?
You can:
- Call the Attorney General’s Homeowner Protection Program (HOPP) hotline at 855-466-3456.
- Visit HomeOwnerHelpNY
You can also:
- File a complaint with the Federal Trade Commission.
- Contact the local U.S. Trustee Office if the scam involves bankruptcy.
- Find more information on Housing Scams.
Housing Rental Scams
A housing rental scam happens when someone pretends to be the owner of the rental property. The scammer lists the rental on Craigslist or other websites, but includes their own contact information, email, and phone number.
How do I know if I am a victim of a housing rental scam?
There are some warning signs that you may be involved in a housing rental scam. Be aware of a property owner who:
- Has ads and/or emails with spelling or grammar mistakes, or a lot of capital letters.
- Says they are overseas (for example, working as a missionary) or too busy to do business in person.
- Asks you to sign a lease before you see the property, or makes you pay a fee to see it.
- Offers the rental property at a much lower price than similar properties.
- Asks you for an unusually high security deposit.
- Asks you to email your completed application, but the application asks for a lot of personal information that can be used to commit identity theft.
What if I am the victim of a rental scam?
You can:
- Call the police.
- File a complaint with the FBI Internet Crime Complaint Center.
- Contact the publisher of the false ad. Let them know what happened.