Short answer: a company that offers to save your home or change your mortgage for a fee may not collect any fee until you have signed a written agreement with your servicer or lender that includes the offer the company got for you. It may not tell you to stop talking to your servicer, and it must give you set notices about its service and its price. Free help is available from housing counselors. This page covers federal law only; other rules may apply where you live. It is general information, not legal or financial advice.
Warning signs
The CFPB lists these signs of a loan modification scam: asking for fees upfront, promising a loan modification, asking you to sign over the title to your property, asking you to sign papers you do not understand, telling you to make payments to someone other than your servicer or lender, and telling you to stop paying your mortgage (CFPB, last reviewed September 11, 2024, read October 30, 2026; this page may be out of date). The FTC adds that scammers may ask you to pay only by cashier’s check, wire transfer or a mobile payment app (FTC: mortgage relief scams, updated September 2022, read October 30, 2026; this page may be out of date).
No fee before you sign with your servicer
A mortgage assistance relief service provider may not ask for or receive any fee until you have signed a written agreement with your loan holder or servicer that includes the offer of relief the provider got for you (12 CFR 1015.5(a), eCFR, text up to date as of October 28, 2026, read October 30, 2026). When it gives you that agreement, it must also give you:
- A separate page saying this is an offer it got from your lender or servicer, that you may accept or reject it, that you owe nothing if you reject it, and the amount you will pay if you accept (1015.5(b)).
- A separate notice from your servicer or lender listing every material difference between your current loan and the offered loan, such as the balance, rate, payments, past-due amounts, fees and term (1015.5(c)).
- For a trial modification, its terms, including that you may not qualify for a permanent change and what you would owe if you do not (1015.5(d)).
This example is only for the math, with an example fee the company disclosed in advance.
| Situation | What you owe the company |
|---|---|
| Before you sign an agreement with your servicer | $0 |
| You reject the offer the company got | $0 |
| You accept the offer and sign the agreement | $1,500, the amount it disclosed |
The CFPB sums up the same rule: a relief company may not collect fees until it gives you a written offer from your lender or servicer that you decide is acceptable, a written description from the lender or servicer of the key changes, and a reminder that you can reject the offer without any charge (CFPB).
Notices in ads and sales talks
Every general ad must say that the company is not associated with the government and that neither the government nor your lender has endorsed its service. If it promises a result such as a loan change, it must also say your lender may not agree to change your loan. Messages aimed at you must add that you may stop doing business with it at any time and that you owe nothing if you reject the offer, with the total price if you accept. If the company suggests you stop paying your mortgage, it must warn, close to that suggestion, that if you stop paying you could lose your home and damage your credit rating (12 CFR 1015.4(a)-(c), eCFR).
Claims a relief company may not make
| Banned conduct | Rule |
|---|---|
| Saying you cannot or should not contact your lender or servicer | 1015.3(a) |
| Misleading you about the chances of a result or how long it will take | 1015.3(b)(1)-(2) |
| Falsely claiming ties to the government, a housing counselor program or your servicer | 1015.3(b)(3) |
| Misleading you about your duty to keep making loan payments | 1015.3(b)(4) |
| Misleading you about refunds, the total cost, or the money you may save | 1015.3(b)(6), (10), (11) |
| Misleading you about free options, such as dealing with your servicer yourself or using a nonprofit housing counselor | 1015.3(b)(9) |
| Making claims about results without competent and reliable evidence | 1015.3(c) |
Source: 12 CFR 1015.3, eCFR.
The attorney exemption has limits
An attorney is exempt from these rules, except the advance fee rule, only if the attorney provides the services as part of the practice of law, is licensed to practice where you live or where your home is located, and follows the local laws that cover the same conduct. To be exempt from the advance fee rule too, the attorney must also put any money paid before legal services are performed into a client trust account and follow the rules for such accounts (12 CFR 1015.7, eCFR). Being a lawyer alone does not make an upfront fee lawful. Questions to ask any lawyer who offers this help:
- Are you licensed to practice where I live or where my home is?
- Will any money I pay before you do the work go into a client trust account?
- Will you represent me yourself, and what exactly is included in your fee?
Free help
The CFPB says the first thing to do if you cannot pay your mortgage is to call your servicer, and points to housing counseling agencies that HUD has vetted, which can discuss options with you (CFPB). The FTC also points to HUD’s list of housing counseling agencies. Find one with the CFPB housing counselor search. See options when you are behind on mortgage payments. For a lawyer, the CFPB mentions legal aid; you can search through the Legal Services Corporation.
Upfront fee schemes show up with other debts too; see advance fee loan scams and student loan debt relief scams.
If you paid or signed something
Keep every paper, email and payment record. Report the company at ReportFraud.ftc.gov and submit a complaint at consumerfinance.gov/complaint. If you signed papers about your deed or title, talk to a lawyer about your options.
Checklist
- Call your servicer yourself before you pay anyone for help.
- Do not pay any fee before you sign an agreement with your servicer.
- Keep making payments to your servicer unless your servicer tells you otherwise in writing.
- Never sign over your deed or sign papers you do not understand.
- Use a housing counselor for free help.
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Sources
- eCFR: 12 CFR 1015.5, Prohibition on collection of advance payments and related disclosures (Regulation O), current text up to date as of October 28, 2026
- eCFR: 12 CFR 1015.4, Disclosures required in commercial communications (Regulation O), current text up to date as of October 28, 2026
- eCFR: 12 CFR 1015.3, Prohibited representations (Regulation O, mortgage assistance relief services), current text up to date as of October 28, 2026
- eCFR: 12 CFR 1015.7, Exemptions (Regulation O), current text up to date as of October 28, 2026
- CFPB: What are mortgage loan modification scams? (reviewed September 11, 2024)
- FTC: Mortgage Relief Scams (updated September 2022)
- CFPB: Find a housing counselor
- Legal Services Corporation: Find legal aid
- FTC: ReportFraud.ftc.gov
- CFPB: Submit a complaint
Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.