How Many Scams Can There Be?

If you have, or are applying for a mortgage or refinance, beware of scams.  Whether you have a Conventional, FHA or VA loan, there are several things to be alert for. 

The credit bureaus sell your information to many businesses to include collection companies.  This is important to know because when applying for a new mortgage or refinance, your chosen lender will access your credit report for loan qualification purposes.  The credit bureaus will then sell your information to other lenders and insurance companies who will contact you to court your business.  And if you have any derogatory remarks on your credit, whether valid or not, the bureaus will sell your information to collection companies.  And the endless phone calls, emails and direct mails begin.  The collection companies are particularly nefarious as they may report a new collection effort to your credit report which may impact your credit score jeopardizing your eligibility for the loan or changing the rate you get based on your FICO score.

But you can stop the credit bureaus from selling your information before it starts by visiting  www.optoutprescreen.com and opt out electronically for 5 years.

There are companies that actually pay people to stand in line at county record offices to obtain the information on your new mortgage.  With that information in hand, they will initiate scams such as:     

• A letter in the mail indicating that you must pay a fee to obtain the recorded mortgage, deed or note on your loan.  NOT true.  All documents that you need for your records are provided by your lender or the title company that closed your loan.   The fee is typically 89.00 and looks like it is being paid to a “government” entity such as the county in which you live.  Shred it!

   

• A letter or phone calls offering  “LOW LOW Rates,” and promises of 2.25% or similar.  They will use the “30 year amortization” words, but the fine print will reveal that the offering is an Adjustable Rate Mortgage (ARM), which can be amortized over 30 years for a few years but then adjusts to a higher rate.   Don’t take the bait…it leads to a high pressure phone call which is designed to get your approval for another credit check and an appraisal ($400 or more!) before the ARM is revealed!   Shred it! 

And there are others, so to protect yourself:    

• If it looks too good to be true, it probably is.

• But if you were pleased with your loan officer’s service and product, call that loan officer to confirm.   Most loan officers will keep their clientele on their radar and will alert them to opportunities to lower their rates.

• Whether a previous client of not, you can call me.  I am always happy to evaluate and compare competitive offers…and to expose scams…no obligation!

• Some of the best financial advice I can offer, is to build a team of respected and trusted advisers to include; your financial advisor, accountant, Realtor, attorney, and your loan officer.  These are powerful relationships that will provide  trustworthy counsel through the big financial decisions.       

Please feel free to call me for a sanity check on any such solicitations.   I will be happy to share my opinion and direct you based on your individual situation.  Though we are home based in Virginia, Access National Mortgage lends in all 50 states.  

Susan Wallace

Access National Mortgage

571-283-1337 phone

SWallace@AccessNational.com

NMLS 218057