Stunned people would actually do this to you

There is disbelief you even have to worry about this. There's anger and it's building. How could people truthfully try to make a living by deceiving, manipulating, and scamming you and other homeowners? Even worse, to do so when you are already navigating the harsh and confusing process of foreclosure. It feels wrong. In a way it's painful. You aren't sure what is real or what isn't and it's not helping. I agree, it's bullshit. The fact that people would do this is completely wrong and I'm sorry you have to deal with it. If I can even help in the most minor way that's what I want to do. I want to show you the most common and severe scams to look out for and also help you know if something is real or not.

It doesn't feel like there are real people helping but there can be

Luckily, even though the situation is hard, some things are simple and a good guiding principle to notice a scam is as follows: anyone charging you money upfront to "help with your foreclosure" is either operating illegally or selling something you could get both for free and most likely better. So, if these are the type of people you are hearing from, save yourself some energy and peace of mind by moving on. If moving on from them feels like giving up, I get it but there are real people who are willing to help, I promise. In Colorado, some of those people are HUD counselors, your servicer's loss mitigation team and the Colorado Foreclosure Hotline. If none of these fit your needs, we at Transitus are here as well.

A frustrating and empowering understanding

Scammers purposely make things confusing and hard to understand but it's easy to explain their tactics in three primary categories. Reading these specific categories and types may frustrate you but it will also empower you to never be taken advantage of. Even further, you may actually reverse the frustration and begin to frustrate the scammers because of how clearly you know their tactics. Let's get to it. There are scams to take your home, to take your money and to take your trust and we will cover all of them together.

Pissed off anyone would try this against you

The worst of the worst. When a scammer tries to manipulate you for the sole purpose of stealing ownership of your home. To be clear, if you have or have almost fallen for these scams in the past, don't shame yourself for doing so. These people are professionals so it's not a negative reflection of you. The two primary scams in this category are a bait-and-switch deed transfer and a rent-to-own rescue concept. In both cases, these are tactics to either knowingly or unknowingly have you transfer the deed of your home to the scammer/buyer so they keep it forever. Below are their specific tactics so you never give them a chance to take your home from you and your family.

• Bait-and-switch deed transfer: They want to make you believe you're signing modification paperwork for your foreclosure, but the contract is actually a transfer of deed and ownership of your property. This is obviously illegal and is upheld in CRS 6-1-1117 and CRS 18-4-401.
• Rent-to-own rescue: They propose the idea that they can stop the foreclosure by purchasing your home beforehand and they'll let you rent the home and promise that you can buy it back when you're ready. This exact scam was prosecuted by the Colorado Attorney General in the Bella Homes case in 2012, and arrangements like this are heavily regulated under CRS 6-1-1115.

A smaller loss but still painful

Even if this isn't the "worst", it feels just as painful. In a time when you need money the most, people are actively doing things to steal it. It's true and unfortunately this is the most common scam type that exists. For the most part, these scams are charging you upfront costs for foreclosure help which on the surface doesn't seem like a problem. I didn't know it was. The truth is, however, charging upfront fees for foreclosure assistance is illegal under CRS 6-1-1107 and the federal MARS rules (12 CFR Part 1015). So know, if they're asking for money before doing any real work or help, walk away immediately. Here is a list of specific tactics that are used:

• Upfront fee scam: They want to get an upfront fee from you and in return they'll save your home. Remember, this is illegal, so even if they did try to help, they clearly won't be beneficial as they are unlawfully doing business with you.
• Phantom help: They want to receive money from you to "negotiate with the bank" and to stop your foreclosure. In reality, they receive the money and then disappear without providing any support. You should instead work directly with your servicer/loss mitigation team.
• Loan modification fraud: They have you apply/pay their business for a foreclosure service that is free or cheaper through your servicer or a HUD counselor.
• Forensic loan audit scam: A company that "audits" your foreclosure to try and find errors or loopholes to help you stop the foreclosure. In a way this is legitimate as it's not illegal but it rarely produces anything that stops the foreclosure.

How many more types of scams are there?

The last but sometimes the hardest scam type to notice are scammers who impersonate legitimacy to try and get money, signatures or personal information from you. By legitimacy, they try to act, look or sound like real programs or government agencies to help with foreclosure when they are not. I know it's annoying and can be exhausting to look out for all these types but I need to give you the information so you can protect yourself. So, if anyone claims false legitimacy or pressures you to act quickly without verification, stop communicating immediately. This type of scam is covered by federal mail fraud (18 U.S.C. § 1341), Colorado criminal impersonation (CRS 18-5-113) and Colorado Consumer Protection Act deceptive practices (CRS 6-1-105) so understand you have support even if it doesn't feel like it. These laws are in place to protect against the specific scams below:

• Fake government program / nonprofit: They create official-looking letters claiming federal program approval, HUD affiliation, or fake state agencies. Real federal involvement comes from the Consumer Financial Protection Agency or HUD. Always verify these agencies and HUD counselors at hud.gov/findacounselor.
• Fake foreclosure paperwork: They make letters designed to look like official foreclosure documents (NED, Combined Notices, Public Trustee mail) to extract money or personal information.
• Fake legitimacy on the phone: They call you and claim to be your servicer, County Public Trustee, or "foreclosure department" looking for immediate payment. Hang up and find the correct contact information to protect yourself.

A relief that you know who they are now

I know that was a lot of information and truthfully that won't cover every case of scamming in this space. If that's a letdown, I get it but here is a quick checklist that can help you identify scams moving forward. If they do any of these, stop interacting with them immediately.

A shameful moment that shouldn't be

If you have already been scammed or believe you have been targeted, I'm truly sorry. That is a horrible place to be and it's not something you deserve ever, let alone when navigating the time-pressured and draining process of foreclosure. Please immediately stop communicating or sending money and don't sign anything moving forward. Next, I know this is extra work and could be painful, but documenting everything in the process will be very helpful for you. All letters, emails, texts, voicemails and any interactions you had with the scammer will best help you get a fair outcome. It can feel lonely doing this process but there are some resources to help you as well.

Is there anyone here to actually help?

To have to worry about scams during this exhausting process of foreclosure is unfair. It's flat out not right and I see that. It makes you question how the world works and wonder if anyone is here to help you when you may need it most. I totally get that. It's deflating, but I know you can get through this. If this article helped you in any way or helped you express what you feel about this process, I am happy I could support you. If you're curious what else we at Transitus do and how we can help, you can always talk with us when it feels right.

This article is general information from Transitus, not legal, financial, or tax advice. Foreclosure rules change and every situation is different. Transitus is not a foreclosure consultant (CRS 6-1-1103) and charges no upfront fees. For free help, call the Colorado Foreclosure Hotline at 1-877-601-HOPE or consult a Colorado real estate attorney.