Scammers see homeowners as potential targets both rich with a major asset and vulnerable with its upkeep. That means there are myriad tricks they will use to get your money, your personally identifiable information, and, in the worst cases, your house itself. Here are a few of the more nefarious scams in play today and how to protect yourself.
For most of us, owning a house marks both our greatest asset and our largest debt—a combination that’s irresistible to scammers seeking big-money opportunities and vulnerable targets.
When fraudsters tap into your home, your American dream can become a nightmare.
Criminals who target homeowners are after one or both of two things: your money and/or your personally identifiable information (PII). Their goal is to steal your cash, exploit your personal data, and gain access to your finances.
Common homeowner scams to watch out for
Criminals who target homeowners often know the ins and outs of the housing world, from mortgages, refinancing, and liens to foreclosures and more. They recognize that home repairs can be a cash cow, and they exploit the complicated nature of homeownership to pull the wool over unsuspecting homeowners’ eyes.
Fake mortgage relief
A scammer contacts you and says they can offer loan relief via refinancing, explains the Federal Trade Commission (FTC). After you share the details of your current mortgage, they offer you a better interest rate and better terms. In exchange, you might have to pay them a “loan officer fee” and then reroute your new monthly premiums to them.
To set this up, you’ll fill out forms, share your PII, and likely get what looks like a legitimate contract. But the gig is up when your original mortgage company contacts you for defaulting on your actual loan payments. You contact your “officer” or their company, only to have them ghost you.
To protect yourself, work only with your current mortgage provider or a well-known lender backed by the Federal Deposit Insurance Corporation (FDIC), Fannie Mae, or Freddie Mac. (If you're unsure, ask a trusted real estate agent for lender recommendations.)
If you’re considering refinancing, visit the bank or lending office in person when possible. Also, carefully review any email communications and websites to ensure they match the official bank name. Scammers often impersonate real banks by slightly altering the name or combining a legitimate bank’s name with a fake one.
Fake repossession threats
Scammers might contact you to say there’s a lien on your house and that paying them is the only thing that will remove it. (A lien is a credit someone has against your property because you owe them a debt. To recover their loss, they can seize your asset.)
Other scammers might say that you risk foreclosure due to debts. They may offer to help get you out of trouble if you relinquish the title to them (so you purportedly can pay them back on more affordable terms). But once you relinquish the title, the property is theirs.
If someone approaches you with threats like these, take a step back and verify the facts. Contact your county’s recorder of deeds to check for any liens on your property. Call your mortgage lender to confirm that your loan is in good standing and to ask about their official foreclosure process.
Keep in mind: foreclosure is a lengthy legal process that often takes months or even years. Anyone offering a quick fix should immediately set off your inner fraud alert.
Why foreclosed homes are prime targets
Foreclosed properties are registered with county records. That makes homeowners on that list extra vulnerable. Scammers will contact them with promises of federal and state aid and other special offers. The FTC suggests you contact the Department of Housing and Urban Development (HUD) and tap into their list of housing counseling agencies for a safe and local professional who can explain your options.
Fake home warranties
A home warranty covers things like water heaters, HVAC systems, and major appliances. The idea is that you pay for an overarching policy rather than one-offs. But, the FTC warns, these policies are often redundant and can be next to impossible to cash in on when the need arises. Sometimes, scammers warn homeowners that a home warranty they don’t even have is about to expire. “Pay up now or face expensive repairs,” the scammers warn.
Before falling for these threats, review your existing homeowner’s insurance policy to see what’s already covered. Also check your appliance warranties—you may not need additional coverage at all.
If you’re considering a home warranty, look up the company on the Better Business Bureau’s Scam Tracker to see if they are in good standing. See their rating on BBB.org, too. You can also talk to a trusted real estate agent to get their take on the policy and company—not all home warranties are rip-offs.
Fake home contractor
The BBB warned that roofing contractor scams were on the rise during the winter of 2025. The scam played out like this: A roofer would ask a homeowner if they wanted a free inspection. The contractor would then share images of another house’s damaged roof or create damage on-site to document.
While this form of contractor fraud is aggressive, it’s not unusual. Scores of homeowners log their contractor scam woes on the BBB’s Scam Tracker. Typically, a contractor makes promises to fix things, asks for the money upfront, does little to none of the work, and disappears.
Ideally, you find contractors with proven track records via recommendations from trusted friends, neighbors, and real estate agents who hired them in the past. Before you hire a home contractor, look them up on BBB.org to see if they are in good standing. Search the BBB’s Scam Tracker for their name.
Be sure they are licensed and insured. Before they begin any work, ask for a written estimate with the terms, dates of service, supply costs, and payment plan. Don’t give more than half the cost upfront. Only pay with a check or credit card. Don’t hire any contractor that asks for the total estimated cost upfront.
Protect your home and your future
Homeownership is one of the biggest investments most of us will ever make, and that makes it a major target for scammers. By staying informed about common fraud tactics, double-checking any unsolicited offers, and working only with trusted professionals, you can help protect your home, your finances, and your peace of mind.
If you ever feel unsure about a call, email, or offer related to your home, trust your instincts and verify it independently. If you're an Allstate Identity Protection member, you can always give us a call—we're here to help you untangle any suspicious situations.