Many struggling homeowners seek quick help with foreclosure, and that's when scammers pounce. They often promise to stop foreclosures, offer miracle solutions, or claim to have special access to programs. Some even impersonate government employees or housing counselors.
Be careful of anyone who:
Work only with trusted professionals; find a HUD-approved Housing Counselor at Credit.org or through the HUD Counselor Locator .
Scammers often misuse the name of the Department of Housing and Urban Development (HUD) to appear legitimate. However, genuine HUD agencies never guarantee foreclosure rescue or charge high upfront fees.
Find authentic information and listings through hud.gov or the HUD Home Store ( hudhomestore.gov ), where qualified official HUD-owned homes are posted.
It is true that HUD-approved nonprofit organizations follow federal rules and never charge for foreclosure counseling. These organizations are trained in foreclosure prevention and offer assistance tailored to your situation. They can guide you through options such as loan modifications, temporary payment suspensions, and even special HUD programs designed to save your home.
Don't be fooled by imposters. Look beyond agency icons; you can verify a nonprofit's legitimacy through the official HUD Approved Housing Counselors page .
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There are several special programs that help homeowners facing hardship. For example, HUD's Good Neighbor Next Door program offers discounted single-family homes to eligible workers, such as teachers, firefighters, law enforcement officers, and emergency medical technicians.
The Good Neighbor Next Door initiative promotes the revitalization of neighborhoods, with many types of eligible properties that are good candidates for rehabilitation. The FDIC offers more information about this program here .
Other programs help local governments and non-profit organizations invest in housing for affordable housing.
Check the HUD website for eligibility criteria and availability in your state, such as AK, FL, or CA.
You don't need to be behind on payments to benefit from foreclosure prevention strategies. Acting early makes all the difference. Contact your mortgage servicer or lender as soon as you start experiencing financial difficulties.
A HUD-certified and registered sales agent or advisor can also explain your legal rights and help you request repairs through the appropriate channels.
Work only with licensed brokers or principal agents who hold a valid real estate broker license. Scammers often pose as real estate professionals or claim to represent HUD-registered sales brokers to lure you into fraudulent transactions.
If in doubt, verify licenses through your state's real estate board and never sign documents under pressure.
HUD real homes are listed online, and the buying process is straightforward if you're working with a legitimate professional. You will need:
Avoid anyone who tells you they can help you skip the lines or get priority access. That's not how HUD's nonprofit programs work.
This is a final checklist to help you avoid foreclosure scams :
For accurate information and free housing assistance, visit Credit.org or the official HUD website . You can also explore options to help homeowners through programs administered by local governments and certified nonprofit organizations.
