$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
mortgage forbearance extension scam
Scammers contact homeowners offering to extend mortgage forbearance programs or modify loans for a fee, collecting personal financial data and payment while providing no actual assistance.
“debt scam”
↑ 83%Key indicators
Usually targetsHomeowners
Often hitsTech workers and developers
Common regionUnited States
Last updated2026-04-04
Estimated impact
$960
median reported loss
Typical range$60 – $6.0K
Recovery rate~15%
Scam breakdown
1
Scammers target homeowners who may be behind on payments, offering guaranteed mortgage forbearance extensions or modifications.
2
They charge upfront fees and collect sensitive documents including tax returns, pay stubs, and mortgage account details.
3
No modification is ever submitted. The homeowner loses their fee and may fall further behind while waiting for help that never comes.
What to do first
Contact your mortgage servicer directly to discuss forbearance or modification options — they are required to help you for free.
Related terms
loan modification scamfake forbearance extensionFinancial relief scamsPhoneRisingHomeownersDistressed borrowersSeniorsTech workers and developersReal estate professionals and homebuyersRetirees and seniorsUnited StatesCanadaloan modification scamfake forbearance extension
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Sarah, 42, a homeowners, encountered what appeared to be a legitimate financial relief scams situation while using Phone. Scammers target homeowners who may be behind on payments, offering guaranteed mortgage forbearance extensions or modifications.
Step 2
What happened next was calculated: They charge upfront fees and collect sensitive documents including tax returns, pay stubs, and mortgage account details.
Step 3
The pressure escalated quickly: No modification is ever submitted. The homeowner loses their fee and may fall further behind while waiting for help that never comes.
The outcome
Sarah realized something was wrong when unsolicited call guaranteeing loan modification or forbearance extension for a fee. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Contact your mortgage servicer directly to discuss forbearance or modification options — they are required to help you for free. Sarah's experience shows why unsolicited call guaranteeing loan modification or forbearance extension for a fee and company asks you to stop communicating with your mortgage servicer are the clearest early warning signs.
How to identify it
- Unsolicited call guaranteeing loan modification or forbearance extension for a fee
- Company asks you to stop communicating with your mortgage servicer
- They request upfront payment before any services are provided
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Contact your mortgage servicer directly to discuss forbearance or modification options — they are required to help you for free.
- ✓Find HUD-approved housing counselors at hud.gov/counseling who provide free assistance.
- ✓Report mortgage relief scams to the CFPB at consumerfinance.gov/complaint.
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
- ✓Save the full chat or call log before blocking the sender so the reporting path still has the original context.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The CFPB issued a 2024 advisory warning that mortgage relief scams were re-emerging as pandemic-era forbearance protections expired and interest rates rose.
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Tell close contacts if a phone or text scam used your identity, so scammers cannot reuse the same story against people around you.
- ✓Contact your mortgage servicer directly to discuss forbearance or modification options — they are required to help you for free.
- ✓Find HUD-approved housing counselors at hud.gov/counseling who provide free assistance.
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The CFPB issued a 2024 advisory warning that mortgage relief scams were re-emerging as pandemic-era forbearance protections expired and interest rates rose.
Consumer Financial Protection Bureau Advisory 2024
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Homeowners, Distressed borrowers, Seniors
Geographic concentration
United States, Canada
Primary channel
Phone — Financial relief scams
Why this group is vulnerable
Homeowners are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The growing number of reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The CFPB issued a 2024 advisory warning that mortgage relief scams were re-emerging as pandemic-era forbearance protections expired and interest rates rose.
Source notes
- Consumer Financial Protection Bureau Advisory 2024
Frequently asked questions
Common questions about mortgage forbearance extension scam
How does the mortgage forbearance extension scam work?+
Scammers target homeowners who may be behind on payments, offering guaranteed mortgage forbearance extensions or modifications. They charge upfront fees and collect sensitive documents including tax returns, pay stubs, and mortgage account details. No modification is ever submitted. The homeowner loses their fee and may fall further behind while waiting for help that never comes.
What are the warning signs of mortgage forbearance extension scam?+
Unsolicited call guaranteeing loan modification or forbearance extension for a fee Company asks you to stop communicating with your mortgage servicer They request upfront payment before any services are provided
What should I do if I encounter mortgage forbearance extension scam?+
Contact your mortgage servicer directly to discuss forbearance or modification options — they are required to help you for free. Find HUD-approved housing counselors at hud.gov/counseling who provide free assistance. Report mortgage relief scams to the CFPB at consumerfinance.gov/complaint.
Who is most at risk for mortgage forbearance extension scam?+
This scam primarily targets Homeowners, Distressed borrowers, Seniors. It is most commonly reported in United States, Canada and typically appears on Phone.
Is mortgage forbearance extension scam on the rise?+
mortgage forbearance extension scam is currently on the rise with growing reports. It has been reported across US, CA. Last updated 2026-04-04.
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Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.