Don’t Be Fooled By Mortgage Scammers

After getting a loan, it’s not uncommon to see an uptick in mail regarding your financing. Some of these letters and postcards come directly from your lender or legitimate third-party solicitors. Unfortunately, others can come from ill-intentioned mortgage scammers.

Luckily, there are ways to protect yourself from junk mail and scammers. The most important thing is not to take the bait.

How Scam Mail Works

To fool recipients and obtain personal information or even cash, scam mailings attempt to:

• Create a sense of urgency by using bold-faced type or all-caps messages on the mailing’s exterior (e.g., “IMMEDIATE RESPONSE REQUIRED”).
• Instill confidence by including official-looking information (e.g., your loan ID number).
• Remain vague enough to pique curiosity and encourage direct contact.

How Scammers Get Your Information

After closing on a home, information like your name, address, lender and loan ID becomes a matter of public record. Legitimate third-party marketers like insurance agencies may obtain this information and send you mail. But unfortunately, so do scammers.

How to Spot Junk Mail

The same tricks that make junk/scam mail effective also tend to give it away. This includes the aforementioned sense of urgency and vague language (e.g., “Contact us to discuss an important matter”). Real lenders typically aren’t pushy and vague; nor do they print personal info like loan ID on the face of an envelope. Additional red flags include spelling/grammatical errors and fine-print disclaimers.

How to Reduce Junk Mail After Getting a Loan

While you can’t stop unsolicited third-party mail entirely, you can take steps to reduce the volume you receive. The FTC recommends registering at the Direct Marketing Association’s (DMA) consumer website DMAchoice.org. Additionally, services like Delete Me are designed to address mortgage solicitations directly.

Remember, some loan-related mail may be legitimate. If you’re unsure or have any other questions about financing, get in touch.