FTC warns about mortgage relief scams targeting vulnerable homeowners

NH Banking News & Announcements

Published April 3rd, 2026

Detected April 3rd, 2026

Summary

The FTC issued a consumer alert warning homeowners about mortgage relief scams. Scammers contact homeowners unexpectedly, promising mortgage modifications or foreclosure avoidance in exchange for upfront fees. The alert advises consumers not to pay upfront fees and to report suspected scams to ReportFraud.ftc.gov.

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The FTC warns homeowners about mortgage relief scams targeting financially distressed homeowners. Scammers contact homeowners unexpectedly, promising to modify mortgages or prevent foreclosure, but demand payment upfront—often via cashier's check, wire transfer, or mobile payment apps. Additional warning signs include being told to stop communicating with lenders and being asked to transfer home deeds to the scammers.

Homeowners seeking mortgage assistance should contact their lenders directly to explore legitimate options, work with HUD-approved housing counselors, and verify any company through official channels before paying fees. The FTC encourages reporting suspected scams at ReportFraud.ftc.gov. This alert is informational and imposes no new compliance obligations on lenders or servicers.

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FTC issues Consumer Alert warning about mortgage relief scams

Announcement For Immediate Release Posted: April 03, 2026

Contact Ian Clark, Public Information Officer
(603) 271-4865 | ian.m.clark@banking.nh.gov

FTC issues Consumer Alert warning about mortgage relief scams

From the Federal Trade Commission:

Life happens and sometimes you end up with trouble paying your mortgage. Maybe you were affected by a natural disaster, lost your job, or got stuck with a bunch of medical bills after an illness. Then, suddenly, you get an unexpected call offering you mortgage relief. But could it be a scam?

Mortgage assistance does exist, but scammers try to take advantage of homeowners looking to save their home. The scammers often call unexpectedly, promising to modify your mortgage or give you a way to avoid foreclosure — if you make a payment upfront.

But don’t pay. It’s illegal for companies to charge a fee before you get any services. Anyone asking you to pay upfront is giving you a warning that you might be dealing with a mortgage relief scam.

Here are more signs of that scam:

Scammers tell you to stop communicating with your lender…but you always have the right to contact your lender directly to see if you have other options.
Scammers want you to pay them only by cashier’s check, wire transfer, or a mobile payment app because it’s hard to get your money back.
Scammers try to convince you to transfer the deed to your home to them. But if you do, you probably won’t get it back.
Need help managing your debt?
If you don’t have one already, start by making a budget. Use this worksheet to see if you can find ways to spend less money and put the savings towards paying off your debt.
Call the companies you owe money to right away. Explain why you’re having trouble paying and ask for a payment plan.
Find legitimate help from housing counselors if you’re having trouble paying your mortgage, or find a credit counselor to help make a plan to repay your debt.
Tell the FTC about any mortgage relief scams you spot at ReportFraud.ftc.gov.