Phantom Help Scam
For-profit Foreclosure Counselors who charge up-front fees
Little to no assistance is actually provided
The Rescue Fraud Scam/False Bailout
The Reality
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The Scam
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You give them the deed to your house
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You lose ownership of your home
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They pay off your mortgage
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They get a new mortgage in their own name and take cash out - you lose all your equity
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They rent your home back to you
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The rent is inflated
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You have option to buy home back
after 1 to 2 years
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You can only buy back at their price or else they sell your house to someone else; or your credit will prevent you from being ready to buy your home back
You pay a “buyer fee” and give the title to your home to a third party in hopes of making it impossible for bank to foreclose on the property because ownership changes.
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THIS DOES NOT WORK!
Tips to Avoid Scams
1. Beware of anyone who asks you to pay a fee in exchange for a counseling service or modification of a delinquent loan.
2. Scam artists often target homeowners who are struggling to meet their mortgage commitment or anxious to sell their homes. Recognize and avoid common scams.
3. Beware of people who pressure you to sign papers immediately, or who try to convince you that they can “save” your home if you sign or transfer over the deed to your house.
4. Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.
5. Never make a mortgage payment to anyone other than your mortgage company without the mortgage company’s approval.
If you suspect a scammer has approached you or victimized you, contact your local Better Business Bureau or state attorney general’s office (in Illinois, 866-544-7151). In addition to reporting a scam locally, you can file a complaint with the Federal Trade Commission (FTC). To file a complaint in English or Spanish, visit the
FTC’s online Complaint Assistant, or call 1-877-FTC-HELP (1-877-382-4357).
For More Information
Call 773-329-4185 (English),
773-329-4181 (Español),
