September 19, 2024 (SAINT PAUL) — Attorney General Keith Ellison has issued a warning to Minnesotans regarding the rise in mortgage assistance scams, following an increase in reports to his Office’s Consumer Action Division. This alert is part of the Attorney General’s monthly Scam Stopper series aimed at protecting Minnesota consumers from common scams.
"I cannot abide scammers targeting anyone in Minnesota, especially people who are already going through financial difficulty,” said Attorney General Ellison. “Unfortunately, that is exactly what mortgage assistance scammers are doing to folks who are struggling with their mortgages. These con artists will promise some kind of help if given a large upfront payment. The scammer then pockets the payment and delivers none of the help they promised. I am issuing this Scam Stopper alert because my Office has seen a recent uptick in reports of these scams and the people of Minnesota need to be on their guard.”
Homeowners seeking mortgage assistance may fall prey to scam artists who charge upfront fees but fail to deliver on promises to save homes from foreclosure or modify loan terms. In Minnesota, paying upfront fees for foreclosure assistance or prevention is prohibited. Nonprofit organizations offer free mortgage assistance as part of their mission.
Scammers often target borrowers whose mortgages are in default or those worried about making timely payments. Some entities may falsely represent themselves as counseling agencies, asking for upfront fees for services such as financial advice or negotiating payments with lenders—services that reputable organizations provide for free.
Under Minnesota law, foreclosure consultants cannot collect fees until after providing services. Homeowners experiencing trouble with mortgage payments should contact their lenders promptly and seek available options.
The following agencies can provide information and assistance regarding foreclosure issues:
- United States Department of Housing and Urban Development (HUD), Minneapolis Field Office
- Minnesota Housing
- Minnesota Homeownership Center
- Lutheran Social Services Financial Counseling
Attorney General Ellison encourages Minnesotans to report scams immediately: "Many people feel embarrassed when a scam happens to them, but the truth is that con artists and scammers are often professionals with years of experience."
To report a scam or file a complaint, visit the Office of Attorney General Keith Ellison's website or contact the office by phone.
For more information on mortgage assistance scams, refer to publications from the Attorney General’s Office.
Contact details:
Office of Minnesota Attorney General Keith Ellison
445 Minnesota Street, Suite 1400, St. Paul, MN 55101
(651) 296-3353 (Twin Cities Calling Area)
(800) 657-3787 (Outside the Twin Cities)
(800) 627-3529 (Minnesota Relay)
The Minnesota Attorney General's Office values diversity and is an equal opportunity employer.