Many homeowners in distress seek quick foreclosure help—and that’s when scammers pounce. They often promise to stop foreclosure, offer miracle solutions, or claim special access to programs. Some even pose as government workers or housing counselors.
Be cautious of anyone who:
Only work with trusted professionals; find a HUD approved housing counselor at Credit.org or through the HUD counselor locator.
Scammers frequently misuse the name of the Department of Housing and Urban Development (HUD) to appear credible. But real HUD agencies never guarantee foreclosure rescue or charge high upfront fees.
Find authentic information and listings through hud.gov or the HUD homestore (hudhomestore.gov), where official qualified hud owned homes are posted.
True HUD approved nonprofits follow federal rules and never charge for foreclosure counseling. These organizations are trained in foreclosure prevention, offering help tailored to your situation. They can guide you through options like loan modifications, forbearance, and even HUD special programs designed to save your home.
Don’t get tricked by imposters. Look beyond the agency icons; you can verify nonprofit legitimacy through HUD’s official approved housing counselors page.
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Several special programs support homeowners facing hardship. For example, HUD's Good Neighbor Next Door program offers discounted single family homes to eligible workers like teachers, firefighters, law enforcement officers and emergency medical technicians.
The Good Neighbor Next Door initiative encourages renewal of revitalization areas, with many kinds of eligible properties that are good candidates for property rehabilitation. The FDIC offers more info on this program here.
Other programs help local governments and nonprofits invest in homes for affordable housing.
Check HUD’s site 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 a difference. Contact your mortgage servicer or mortgage lender as soon as financial trouble starts.
A certified HUD registered selling broker or counselor can also explain your legal rights and help you apply for relief through proper channels.
Only work with licensed principal brokers or agents who hold a valid broker’s real estate license. Scammers often pretend to be real estate professionals or claim to represent HUD registered selling brokers to lure you into bad deals.
When in doubt, check licenses through your state’s real estate board and never sign documents under pressure.
Real HUD homes are listed online, and the buying process is straightforward—if you’re working with a legitimate professional. You’ll need to:
Avoid anyone who tells you they can help you skip the line or get priority access. That’s not how the HUD’s nonprofit programs work.
Here’s a final checklist to avoid foreclosure scams:
For accurate information and free housing support, visit Credit.org or the official HUD website. You can also explore options to assist homeowners through programs run by local governments and certified nonprofits.
