Don’t Fall for It: Foreclosure Rescue Scams Are Targeting Utah Property Owners
Foreclosure rescue scams aren’t new, but they’re getting more sophisticated—and more dangerous. According to the Utah Division of Real Estate’s Q1 2025 newsletter, these schemes continue to exploit vulnerable homeowners and small landlords facing financial pressure.
Whether you’re behind on your mortgage or you’re trying to help a struggling tenant avoid eviction, it’s critical to understand what’s legal, what’s not, and how these scammers operate.
What Is a Foreclosure Rescue?
Under Utah law, “foreclosure rescue” refers to any service offered—usually for a fee—that claims to help a borrower avoid foreclosure. This can include loan modifications, short sales, or any arrangement involving the transfer of property title to a third party.
The key element: these services are often pitched with the promise of relief, but they come with strings attached—and in many cases, legal violations.
Red Flags to Watch For
Here’s what to look out for when someone approaches you (or your tenants) with a “solution” to foreclosure:
- No written agreement outlining the services and terms
- Pressure to transfer title to the rescuer or a related party
- Instructions to stop communicating with your lender, attorney, or credit counselor
- False claims about connections to government programs, nonprofits, or lenders
- Requests to make mortgage payments to someone other than your loan servicer
These practices aren’t just unethical—they’re illegal under Utah Code § 61-2f-401 and § 61-2f-102.
Real Estate Professionals Must Stay Vigilant
As a landlord or licensed professional, you’re often the first to spot distress—whether it’s your own or your tenant’s. You’re also in a position to recognize when something looks off.
Here’s how you can help:
- Educate tenants who may be approached with fraudulent offers
- Report suspicious activity to the Utah Division of Real Estate or Attorney General’s Office
- Avoid participating in transactions that involve questionable title transfers or false claims of representation
If you’re already involved in property management, be sure you’re also in compliance with the new licensure rules discussed in our post: New Utah Law Requires Licensure for Property Managers in 2025.
Example: What Not to Do
In a recent case cited in the DRE newsletter, a Utah broker facilitated a foreclosure rescue plan that involved transferring property to an entity he controlled—without a written agreement and under false pretenses. He was fined over $100,000 and placed on license probation for two years.
Don’t let that be you.
For tips on keeping your operations legally sound, check out Avoiding Costly Eviction Mistakes: A Guide for Utah Landlords.
Final Thoughts
Foreclosure rescue scams are bad news for everyone—owners, tenants, lenders, and the professionals caught in the middle. If it sounds too good to be true, it probably is.
Before you sign anything or agree to transfer property under pressure, make sure you understand your rights and the risks. These scams can cost you far more than your home—they can cost you your license, reputation, or financial future.
If you’ve encountered a suspicious foreclosure “solution” or want legal guidance on how to protect your property, reach out to Duckworth Legal Group. We help Utah landlords make smart, legal decisions under pressure—before it’s too late.
Call (801) 882-7444 or email info@duckworthlegalgroup.com to schedule a consultation.