Mortgage and Home Equity Scams in Virginia

If you are behind on your mortgage (home loan), you may be desperate for help. Scammers know that, and they target homeowners in exactly that situation. This page explains the warning signs and where to find legitimate, free help.

What are foreclosure rescue scams? 

A foreclosure rescue scam happens when someone promises to save your home from foreclosure. Foreclosure is the legal process where a lender takes your home because you have not paid your mortgage.

The scammer charges you a fee, but does little or nothing to actually help. In the worst cases, they trick you into signing over the title (the legal ownership) of your home.

It can be very hard to tell a scammer from someone who genuinely wants to help, especially when you are under stress. The Fairfax County Consumer Services division has good advice on how to spot the warning signs of a foreclosure scam.

Where can I get legitimate help if I'm behind on my mortgage? 

Free, confidential help is available from the Department of Housing and Urban Development (HUD). 

HUD-approved housing counseling agencies offer free, personalized advice on budgeting, loan changes, and preventing foreclosure. These counselors are independent: they work for you, not for your lender.

You can find a HUD-approved housing counselor near you using HUD's Housing Counseling Locator.

What if a foreclosure sale is happening soon? 

If a foreclosure sale of your home is coming up very soon, you may want to consider filing for bankruptcy to stop it. 

Talk to a bankruptcy lawyer right away. Time is very short in these situations.

Legal aid can connect you with help. You can also find a bankruptcy lawyer using the National Association of Consumer Advocates search tool. Under "area of practice," select "bankruptcy" from the drop-down menu. Be sure to ask in advance if there is a charge for the initial consultation.

Read more: What is bankruptcy and can it help me?

What is a reverse mortgage scam? 

A reverse mortgage is a way for older homeowners to borrow money based on the equity (the value they have built up) in their home. Legitimate reverse mortgages exist, but they come with risks that are important to understand before signing anything.

Scammers sometimes use reverse mortgages as a way to pressure older homeowners into handing over money or ownership of their home. If someone contacts you out of the blue about a reverse mortgage, treat it as a red flag.

The Federal Trade Commission (FTC) has a detailed guide on how reverse mortgages work, what the risks are, and how to get the best deal if you decide one is right for you.

Read more: What to know about reverse mortgages

Where can I get free legal help in Virginia? 

If you need a lawyer but cannot afford one, free help may be available. Call 866-LEGLAID (866-534-5243) or visit virginialawhelp.org/get-legal-help to find a legal aid office near you.