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Mortgage ‘Final Notice’ scam: what You Need to Know
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Springfield — May 22, 2024 — Homeowners across the US are targeted by a deceptive mortgage scam, receiving official-looking “final notice” letters that aren’t from their lenders.These solicitations are designed to appear legitimate and often use alarming language to pressure recipients. Learn the red flags to watch for and how to protect your finances from these fraudulent schemes. Authorities and experts warn about the rising prevalence of this scam, so take action now.
Mortgage ‘Final Notice’ Letters: What You Need to Know About This Emerging Scam
Homeowners in Springfield,Mo., and across the country are reporting a concerning trend: official-looking letters arriving in the mail claiming to be a final notice
regarding their mortgage. These letters,often designed to mimic official communications from a bank,are,in fact,deceptive solicitations. [[1]], [[2]], [[3]]
Did you know?
Scammers frequently enough target new homeowners as their mortgage details is publicly available after the deed is recorded with the county.
How the Scam Works
The letters typically feature alarming language, such as FINAL NOTICE
in large, bold font. Thay may include details about your home purchase, including the date and amount, adding an air of legitimacy. The core message often states something like, We’ve been trying to reach you regarding an crucial matter related to your mortgage.
The goal is to prompt you to call a number provided in the letter.
They’re going to create urgency,like on yours,putting final notice,second attempt,immediate response needed,things like that. Just to create that urgency to get you to respond a little quicker.
Mitch Wilkins, Arvest Bank
The Danger of Responding
Mitch Wilkins with arvest Bank warns that these calls are designed to extract personal information. They’re going to try to get personal information from you weather it’s to sell you something or more sinister than that.
This information can be used for identity theft or to pressure you into purchasing unnecessary or overpriced services,such as a home warranty [[1]].
Red Flags to Watch for
- Urgent Language: Phrases like
Final Notice,
Second Attempt,
orImmediate Response Needed
are common tactics to create panic. - Unofficial Appearance: While the letter may look like it’s from your bank, it likely isn’t.
- Fine Print Disclaimer: Look for a disclaimer, often in small print, stating something like,
Not affiliated with or endorsed by any bank institution and/or lender. A licensed insurance agent may contact you.
Pro Tip
Always verify the legitimacy of any interaction regarding your mortgage by contacting your lender directly using the number on your official statements or website.
Why Are New homeowners Targeted?
New homeowners are particularly vulnerable to these scams because their information is readily available. Whenever they record your deed with the county, it’s going to be public info; There are people that will go out there and retrieve this information. And on the deed, it’s going to have your mortgage information, how much you financed it, and your address, of course,
explains Wilkins.
Protecting Yourself
If you receive a suspicious letter,take these steps:
- Contact Your Lender: Call your mortgage lender directly to verify the information in the letter.
- Research the Number: Google the phone number provided in the letter. Reviews or complaints about the company may appear.
- Be Skeptical: Do not provide personal information over the phone to unsolicited callers.
FAQ: Mortgage Scam Letters
- Q: What should I do if I receive a suspicious mortgage letter?
- A: Contact your lender directly to verify the letter’s legitimacy.
- Q: Why am I receiving these letters?
- A: Your mortgage information becomes public record after your deed is recorded.
- Q: What information are scammers trying to get?
- A: Personal information that can be used for identity theft or to sell you unnecessary services.
- Q: How can I protect myself?
- A: Be skeptical of unsolicited communications, and always verify information with your lender.
