Is it legal to charge upfront fees for foreclosure help in New Jersey?

Generally no. The federal MARS rule (Regulation O) prohibits mortgage assistance relief companies from collecting fees before the homeowner has a written offer from their lender that they decide to accept, and New Jersey law prohibits foreclosure consultants from taking upfront fees. Attorneys operating within their normal practice are treated differently, which is one reason to prefer licensed New Jersey attorneys for legal work.

How do foreclosure rescue scammers find homeowners?

Foreclosure filings and sheriff sale schedules are public records in New Jersey, so once a case is filed, mail, calls and door-knocks follow. The volume of contact says nothing about your situation; it only means your case appeared in a public list.

Where do I report a foreclosure rescue scam in New Jersey?

Report to the New Jersey Division of Consumer Affairs (njconsumeraffairs.gov), the Federal Trade Commission (reportfraud.ftc.gov), and the Consumer Financial Protection Bureau (consumerfinance.gov/complaint). If a licensed professional was involved, their licensing board as well.

Read this before signing anything

Is This "Foreclosure Help" a Scam?

The moment a foreclosure is filed, it becomes public record, and the letters, calls and door-knocks begin. Some are legitimate. Here is how to tell, in seven red flags.

1
They want money before they have done anything
Under the federal MARS rule, companies offering mortgage relief generally may not collect a fee until you have a written offer from your lender in hand and accept it. New Jersey law likewise prohibits foreclosure consultants from taking upfront fees. An advance fee is not a yellow flag; it is the defining one.
2
"Stop talking to your lender / don't contact a lawyer"
Nobody helping you benefits from you having less information. Cutting you off from your servicer, a HUD counselor, or an attorney only benefits someone who needs you not to check what they are telling you.
3
They ask you to sign the deed over "temporarily"
Sale-leaseback and "sign it over and rent it back" arrangements are the classic equity-stripping scam and are specifically regulated under New Jersey law. Once the deed moves, the leverage is gone; people lose the home and the equity.
4
A guarantee: "we stop all foreclosures"
Nobody can guarantee a foreclosure outcome, not an attorney, not a company, and not this site. Outcomes depend on your lender, your numbers and your timing. A guarantee is a sales tactic, not a service.
5
Pressure to sign today, at your door
Sale notices are advertised publicly, so investors and rescuers appear in waves at exactly the deadline. Legitimate options do not expire this afternoon; New Jersey law generally gives you the right to adjourn the sale twice, up to 30 days each.
6
They "are" or "work with" the government, vaguely
Government help exists: HUD-approved counselors and the New Jersey court mediation program, and both are free. Anyone charging for access to a government program is selling you a phone call you could make yourself.
7
Payments should go to them instead of your lender
Never route mortgage payments through a third party who "will handle it." That money typically never reaches the lender, and the missed payments compound the case against you.

What the law actually says

Under the federal MARS rule (Regulation O), companies offering mortgage assistance relief generally may not collect any fee until you have a written offer from your lender or servicer in hand and choose to accept it. They must also tell you that you can stop doing business with them at any time and that your lender may not agree to change your loan.

New Jersey's Foreclosure Rescue Fraud Prevention Actadds state prohibitions: foreclosure consultants may not take upfront fees, and "rescue" deals involving the transfer of your deed, including sale-leaseback arrangements, are tightly regulated precisely because they were the signature scam of the last foreclosure wave.

Free, legitimate help exists and asks you for nothing: HUD-approved housing counselors and the New Jersey courts' foreclosure mediation program.

Where to report one

NJ Division of Consumer Affairs

njconsumeraffairs.gov

Federal Trade Commission

reportfraud.ftc.gov

CFPB

consumerfinance.gov/complaint

Held against these flags: this site charges nothing, takes no fees from anyone it lists, never asks for your deed, tells you to stay in contact with your lender, and puts free government options first. Judge us by the same standard, and anyone else too.

See My Options, Free

Educational information, not legal advice. If you believe you are the victim of a scam, the agencies above and a licensed New Jersey attorney are the right next calls.

Independent, and paid by nobody

We take no referral fees, no commissions, and no advertising money from anything on this site. Every cash buyer, nonprofit and government program listed is independently owned and operated with no connection to us. The one exception is Corcoran Sawyer Smith x Builders Resource Center, a brokerage the people behind this guide have an ownership interest in, which is labeled as a related business everywhere it appears so you can weigh it accordingly.

help@njforeclosureguide.org

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