I told my tenant that this was not the case, this was either a mistake or a scam.

Distressed Property Laws protect homeowners from foreclosure rescue scams (in a nutshell).

Or are they a scam?

So many scams to seduce folks nowadays.

The background check I have done shows that this company is nothing more than a scam.

@Bea Bugan, IMHO, you being asked to pay anything BEFORE closing your deal = SCAM!

For too many years sinkhole claims were a much used and abused scam benefiting homeowners, engineering firms, repair companies, lawyers etc..By some remarkable coincidence, as the cost of coverage became more expensive, benefits became slimmer, and the economy improved, the amount of claims have fallen off dramatically. 

Agreed give them a chance to own, since there payments will be lower once they qualify, also there are numerous reasons why credit falls and at time not of our own fault such as credit repair scams, but yes they do have to start doing credit counseling to manage long term

I prefer my letters - and therefore my name - not become associated with these guys as many of them read like scams (and many of them actually are).But the greatest finds, at least in my experience, have been from driving around with my eyes open.

The terms are often onerous, and it isn't news there are scams with startup lenders especially seeing how hot the market is across the US, it takes a certain level of sophistication to deal with these types.