Protecting Your Home Against Mortgage Scams

As a longtime realtor and advocate for homeowners across Monterey County, I have heard some terrible stories about homeowners getting scammed, usually when they are under financial stress. Two scams in particular—Equity Skimming and Mortgage Elimination—are targeting homeowners who are trying to stay afloat. Let’s break down what these scams look like and how you can protect yourself and your property.

Equity Skimming:

Equity skimming happens when a bad actor convinces a struggling homeowner to sign over the title of their home, often with the promise of saving it from foreclosure. Instead of helping, the scammer collects rent or mortgage payments from the owner and never pays the original mortgage, leaving the homeowner in deeper trouble.

How to Protect Yourself:

• Never sign over your home’s title to anyone offering foreclosure “rescue.”

• Work only with licensed professionals—reputable lenders, real estate agents, and housing counselors who don’t ask for ownership rights or power of attorney.

• Read every document carefully and consult an attorney if anything feels unclear or rushed.

• Be wary of urgency tactics—fraudsters often pressure you to make quick decisions or transfer property immediately.

Mortgage Elimination Scams:

Some scammers claim they can eliminate your mortgage debt through a secret legal loophole—for a hefty fee. Let’s be clear: no such loophole exists. These offers are not true and can lead to financial ruin or legal consequences.

How to Protect Yourself:

• Be suspicious of anyone promising to cancel your mortgage for a fee.

• Seek advice from trusted professionals—a financial advisor or HUD-approved housing counselor—before paying for any mortgage “relief” services.

• Report suspicious offers to state agencies like:

  • California Department of Real Estate (DRE)

  • Department of Financial Protection and Innovation (DFPI)

  • California Attorney General’s Office

  
  

If you or someone you know is facing financial hardship, you’re not alone—and there are real solutions. Scammers prey on fear and urgency, but knowledge is your best defense. Make sure to speak to licensed professionals, communicate with your lender, and always remember that things that are too good to be true....are too good to be true!