Foundation Repair Scams and Red Flags

Last reviewed October 28, 2026 · 3 sources cited

Most foundation contractors are legitimate, but foundation work is expensive, hard for homeowners to verify and often sold under time pressure. The FTC's home-improvement scam guidance fits it well.

Warning signs from the FTC

The Federal Trade Commission's guidance on home improvement scams lists these warning signs:

• Contractors who come to your door claiming they are "in the area."
• Claims of leftover materials from a previous job.
• Pressure to decide immediately rather than giving you time to consider.
• Requests for full payment up front, or cash-only payment.
• A request that you obtain the building permits yourself.
• A suggestion that you borrow from a lender the contractor knows.

(Source: FTC.^[1])

Protective steps from the FTC

• Hire only licensed and insured contractors; confirm the license with your state or county and ask for proof of insurance.
• Get recommendations from people you trust, and check complaints with your local Home Builders Association and consumer protection officials.
• Get multiple written estimates; do not automatically pick the lowest, and ask for an explanation if bids differ widely.
• Get a written contract with the contractor's name, address, phone number and license number, start and completion dates, and any verbal promises in writing.
• Do not pay the full cost up front, and do not make the final payment until the work is finished and you are satisfied.
• Do not sign blank or unread documents, and do not let anyone rush you into signing.

(Source: FTC.^[1])

How these show up in foundation work

• An alarming diagnosis with a deadline. Foundations rarely fail in days. If the pitch is "sign today" and you have no independent evaluation, slow down. See do you need a structural engineer?
• A repair that does not match the cause. Piers proposed when the evidence points to water, or no mention of drainage or leaks.
• Vague scope. No pier count, no design, no measurements, no post-repair survey. See questions to ask a foundation contractor.
• Financing pushed at the table. The FTC warns against contractor-arranged financing without comparing terms.^[1]
• Promises beyond the engineering. The ASCE Texas Section guidelines say remedial measures cannot achieve perfection and elevation adjustment is unlikely to produce a fully level foundation.^[2]

If you think you were scammed

1. Stop payments if you can, and keep all paperwork, texts and photos.
2. Contact your state attorney general or consumer protection office and your local building department.
3. Report to the FTC at ReportFraud.ftc.gov.
4. If you paid by credit card, ask your card issuer about disputing the charge; the FTC notes you may be able to withhold payment through your card issuer when a good-faith dispute exists.^[3]