“Your money back in full if we don’t get the modification.”
Somebody calls, mails, or knocks. They say they can cut your mortgage payment and stop the foreclosure. They sound confident. They might even mention attorneys.
Then comes the ask: a few thousand dollars, up front, to "get started."
Stop right there. Under federal law, charging you a fee before you have a signed deal from your lender is illegal. The upfront fee isn't the price of the help. The upfront fee IS the scam.
The pitches are polished, because these are professional sales operations. Here's real language pulled from government cases:
You're "preapproved" for a modification.
A "team of experienced attorneys" will negotiate with your lender — and the firm is "100% successful."
They can "beat the system." (And: stop paying your mortgage, stop talking to your mortgage company, while we work.)
"Your money back in full if we don't get the modification."
Every one of those lines came from a company that was later sued or prosecuted.
Step one: they find you on the public foreclosure list, or you call their radio or online ad ("Behind on your mortgage?").
Step two: the qualification call. A salesperson takes your loan details, then comes back with great news — you "qualify." Success is "guaranteed." There's even a money-back promise.
Step three: the fee. Usually $1,000 to $5,000. Sometimes split into "phases" or monthly "legal retainer" payments so the bleeding lasts longer.
Step four: the isolation. They tell you they'll "handle everything." Don't talk to your lender. Don't answer its mail. Often: stop making your payments — "it shows hardship." This is the most damaging step. While you go silent, late fees pile up, your credit sinks, and your sale date gets closer.
By the way — it is flat-out illegal for them to tell you not to contact your lender. A federal rule (the MARS Rule) bans that exact instruction. They say it for one reason: so you won't find out nothing is being done.
Step five: the stall. Months of "we're negotiating." Requests to resend documents. Fake status updates. Sometimes fake approval letters with a made-up new rate.
Step six: the loss. There was never a modification. Often your lender never heard from them at all. You're out the fee, months further behind, and closer to losing the house. The phone goes dead, and the company reopens under a new name.
Home Matters USA sounded legitimate. It operated under several names — Academy Home Services, Atlantic Pacific Service Group, Golden Home Services America — run by Michael Nabati, Armando Solis Barron, Dominic Ahiga, and Roger Dyer.
Their reps claimed a track record of success and the ability to "beat the system." They told homeowners to stop paying their mortgage companies and stop talking to them — for the three months the "process" would take. Some reps even claimed ties to government COVID-19 relief programs.
More than 3,000 people paid them thousands of dollars each. Many were elders and veterans. The promised modifications never came.
The FTC and California's financial regulator sued in 2022. In February 2024, a federal court ordered the operators to turn over $19 million and banned them from the industry for life.
Read that victim list again: elders and veterans. Smart, careful people. These scammers are pros. Falling for one doesn't make you foolish — it makes you targeted.
Everything a loan-mod company promises, you can get for free.
Call a HUD-approved housing counselor: 888-995-HOPE (4673). Free, 24/7, trained, and on your side. A counselor will help you build the same application a scammer charges $3,000 to fumble.
Call your servicer's loss mitigation department yourself. It's the one call scammers beg you not to make. Ask what options you qualify for: modification, forbearance, repayment plan, short sale.
Use your federal rights. Under 12 CFR §1024.41 — a federal rule that can pause your foreclosure when you file a complete application for help — your servicer must review you for all available options if your complete application arrives more than 37 days before the sale, and it can't conduct the sale while that review is pending.
Keep paying what you can, to your servicer only. Never send mortgage money to a "helper." If someone wants your "trial payments" sent to them, that's the phantom help scam — it has its own guide.
If you've already paid a scammer, report it to the FTC at ReportFraud.ftc.gov and to your state Attorney General. You're a witness now, not a fool.
Colorado: Under the Colorado Foreclosure Protection Act, it is illegal for a foreclosure consultant to collect upfront fees, period. The AG's Mortgage Fraud Information Center is 800-222-4500, and the free Colorado Foreclosure Hotline is 1-877-601-HOPE (4673).
Arizona: Foreclosure consultants can't take any compensation until they've fully performed every promised service, must give you the contract at least 24 hours before signing, and you can cancel until midnight of the 3rd business day after signing.
California: Civil Code §2944.7 bans advance fees for loan modification work — and it explicitly covers attorneys too. "But we're a law firm" is not a loophole in California.
Nevada: Loan modification and foreclosure consultants must be licensed by the Nevada Division of Mortgage Lending. Ask for the license number and verify it. No license means walk away.
Florida: Fla. Stat. §501.1377 bans collecting any payment before ALL promised services are complete, requires a written agreement, and gives you a non-waivable 3-business-day right to cancel.
This guide is educational information, not legal advice. For advice about your specific case, talk to a HUD-approved housing counselor (free) or a licensed attorney.
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