How To Spot Mortgage Assistance Scams—as FTC Releases $3 Million in Refunds to Victims

The Federal Trade Commission (FTC) will distribute nearly $3 million in refunds to approximately 2,000 homeowners who were victims of a mortgage relief scam. This action follows a February 2024 federal court ruling that found Home Matters USA guilty of defrauding distressed homeowners. The company, which operated under aliases such as Golden Home Services and Home Relief Service of America, preyed on vulnerable populations, including veterans and older adults, by promising to reduce mortgage payments and prevent foreclosures. Ashley F. Morgan, a debt and bankruptcy lawyer, noted that individuals in financial distress are particularly susceptible to such scams due to fear and a desire for quick solutions. Cody Schuiteboer of Best Interest Financial explained that scammers often instruct homeowners to cease mortgage payments and pay the relief company directly, creating further financial complications. These fraudulent operators also use deceptive names and claims, such as "government guaranteed" or "HUD approved," to mislead victims.