Watch Out for This Mortgage Scam

It's time for the latest scam. And this one preys on those who have recently bought a home in Champaign - Urbana, or have refinanced their mortgage.

If you get a pink postcard in the mail that reffers to an “important matter” regarding your recently closed mortgage, just go ahead and toss it. It's a scam.

If you have just closed on a new mortgage, you could be a prime target for this scam. 

How does this scam work? When you close on a home, many records become public information. This means that anyone can find out details about the mortgage lender, the borrower, the loan amount, the mortgage number, and the property address through public records. When the scammers have that information, they use it to impersonate a financial institution that reaches out to you, saying they must conduct important and urgent business. 

The thing to remember is that your lender will most likely never send you a postcard, or an email, referencing details about your home mortgage. You should always be on the lookout for scam attempts.

Here’s what the postcard may look like:

Look out for these red flags:

  • There’s no clear indication who the postcard is from.
  • The small print may indicate that the information is provided by H.W.C., Home Warranty Corporation, Mortgage Recovery Services, or another business that is neither affiliated with, nor sponsored by your lender.
  • A Mortgage ID number is displayed and does not match your lender's loan ID number.
  • The phone number displayed does not match your lender's phone number.
  • You receive information about your mortgage via a postcard instead of a sealed first-class letter.

What you should do

If you receive a postcard like this, you DO NOT need to call the 800 number on the card, and you DO NOT need to take any further action. Simply throw the card away.

One of the most important things you can do is to be aware of recent scams and recognize the warning signs. The Federal Trade Commission is an excellent resource for learning safety tips, filing complaints, and reporting fraud.

Visit our blog twice a week for more helpful real state articles and local Champaign County news. Follow us on Facebook! Rose Price can help you find the ideal home in Champaign - Urbana! Start your home search now with our powerful home search feature.

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