Americans have lost tens of billions of dollars to real estate, mortgage, and home repair scams since 2020, according to the latest data from the Federal Trade Commission. From fake foreclosure relief to fraudulent contractors, median losses range from $1,000 to $2,000 per case, with hot spots like California, Florida, and Nevada facing some of the steepest totals.
With home values remaining stubbornly high and affordability stretched, real estate scams targeting buyers, homeowners, and investors remain an ongoing risk. If you're navigating the housing market, Motley Fool Money's reviews of the best mortgage lenders can help secure financing safely.
Real estate fraud statistics: Total and median losses
Real estate fraud losses have steadily increased since 2020, peaking at $318 million in 2024 despite fewer reported cases than in prior years. $230 million has been lost to real estate fraud through the third quarter of 2025, with the median loss coming out to $1,950.
Real estate fraud statistics by state
California leads in total real estate fraud losses, totaling $12.9 million in the third quarter of 2025. Texas and Florida follow, with real estate fraud losses amounting to $9.1 million and $8.3 million, respectively.
Nevada reported the highest per-capita rate of real estate fraud, with 29 reports per million residents.
Maine, Vermont, and Alaska all reported less than $10,000 in real estate fraud losses in the third quarter of 2025.
Mortgage fraud reports by year
Mortgage fraud involving deceptive practices or modification of terms peaked in 2021 with nearly 50,000 reported cases. Counts have fallen since then and have stabilized around 9,000 per quarter. Mortgage fraud appears to fluctuate with housing market cycles -- when more mortgages are originated, there's more opportunity for fraud.
Mortgage foreclosure fraud statistics: Total and median losses
Mortgage foreclosure relief and debt management fraud -- which is separate from general mortgage fraud -- costs Americans tens of millions of dollars every year. 2024 is the costliest year on record for mortgage foreclosure relief fraud, with total losses adding up to $83 million. 2025 is on pace to be another costly year, costing victims over $66 million through the third quarter of 2025.
Median losses from mortgage foreclosure fraud have risen over time, peaking at $2,000 in the third quarter of 2025.
Home improvement fraud statistics: Total and median losses
Home improvement scams are on the rise, costing homeowners a record $274 million in 2024, a tripling of the losses in 2021. Through the first half of 2025, home improvement fraud losses have totaled more than $110 million, according to the FTC.
The numbers of home improvement fraud cases have fallen since 2021, as has the median loss from home improvement fraud. Overall losses being higher suggests that some scammers have shifted to larger, more costly scams.
Home improvement fraud statistics by state
Home improvement fraud is most common in Georgia (202 cases per 100,000 residents in the second quarter of 2025), Washington, D.C. (193 cases), Florida (183), Texas (166), and Nevada (159). Texas, Florida, and California top the list for total number of reports.
Home improvement fraud is least common in North Dakota (44 cases per 100,000 residents), South Dakota (48 cases), Vermont (51), Maine (54), and Nebraska (54).
Median home improvement fraud losses are highest in Alabama ($1,000), Florida ($900), Alaska ($899), Georgia ($825), and Kansas ($823). Losses are lowest in Maine ($299), Vermont ($450), Hawaii ($483), Iowa ($486), and New Hampshire ($500).
Protecting yourself from real estate scams
Fraud in real estate, mortgages, and home improvement isn't rare. It's systemic and increasingly prevalent, and it costs Americans billions every year. These tips can help you avoid the most-common real estate scams:
- Do your homework: Look up contractors, agents, or lenders before signing anything. Select contractors who are licensed and insured and are recommended by people you trust.
- Trust but verify: Double-check property records and business licenses before making any decisions.
- Don't rush big jobs: Scammers like to create fake urgency to pressure targets. Take your time and get multiple estimates.
- Keep your money safe: Use secure payment methods. Be wary of anyone asking to be paid in full up front. Never agree to a loan with terms you don't understand.
With real estate scams on the rise, homebuyers, owners, and real estate investors should stay cautious. Thankfully, there are resources to help you find trustworthy lenders and contractors, including your own personal network, your local Home Builders Association, state and county lists of licensed contractors, and expert reviews of mortgage lenders.
Doing your due diligence before making any big real estate decisions can make the difference between falling victim to a scam and confidently building the home and future you've been working toward.
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