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How to spot a foreclosure rescue scam: 12 warning signs

When a foreclosure notice is recorded, it becomes public, and scammers start calling. The biggest warning sign is a request for money up front to save your home, which California law generally prohibits for loan modification help. Here are 12 red flags and where to report them.

By Guillermo Serafin, broker and owner of Serve First Realty. Updated October 2026.

12 red flags

  1. They want money up front to change your loan or stop the foreclosure. California generally prohibits borrower-paid fees for loan modification or forbearance help before every promised service is fully done, and federal law adds more payment conditions. A real estate license does not create an exception to those rules.
  2. They ask you to sign over your deed or title, often with a promise that you can rent the home and buy it back later.
  3. They tell you to pay them instead of your lender.
  4. They tell you to stop talking to your lender or your housing counselor.
  5. They promise or guarantee they can stop your foreclosure. No one can promise that. Your lender, the trustee, or a court makes those decisions, not a rescue company.
  6. They rush you or pressure you to sign today.
  7. They ask you to sign blank papers or papers you do not understand.
  8. They claim to be from the government or a government program, but ask for a fee. Real government help is free.
  9. They sell a forensic loan audit for a big fee, promising it will force your lender to forgive your loan.
  10. They have no license you can check, or they will not give you their license number.
  11. They contact you out of nowhere by letter, phone, text, or at your door right after your notice was recorded.
  12. After a sale, they offer to claim your leftover money for a large cut. You can claim surplus funds yourself.

How to check someone out

Where to report a scam

General information, not legal advice. Sources: California Civil Code section 2944.7; California Attorney General and Department of Real Estate consumer warnings; LA County Department of Consumer and Business Affairs.

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IMPORTANT NOTICE

Serve First Realty is not associated with the government, and our service is not approved by the government or your lender.

Even if you accept this offer and use our service, your lender may not agree to change your loan.

Asking for a guide or giving contact permission does not stop foreclosure or extend a deadline.

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