An Old Mortgage Scam Is Back.

          An Old Mortgage Scam Is Back.

Not long ago there was a scam involving thieves tricking you into thinking you bank had sold your loan and there was now a new place to send your mortgage payment. Well, it seems this scam may be back!  

What Can You Do? Here’s is what I suggest you do; if you receive an official looking letter that looks like it is from a mortgage company or bank be suspect, if you have not spoken to your banker or mortgage broker. If the letter tells you to send your mortgage payment to a new address be cautious. 

The letter may look official and will say you should begin to send your mortgage payments to a new company and that new company is a fictitious company. The sad part about this scam is by the time you figure out it is a scam you probably have received a letter from your original bank saying they are going to start foreclosure procedures against you. Unfortunately, you don’t have a leg to stand on and you will have incurred late payments due and tainted credit. These costs will be applied and you will have to pay them.

So what can you do to protect yourself and not become a victim? Law enforcement officials who are familiar with this scam say this scam works because the public like you don’t know the rules on mortgage transfers. Under California law the lender who gave you the loan (funded), when you purchased your home MUST send to you a “goodbye” letter notifying YOU (borrower) that payments should be sent to a new company as your loan had been sold. In the “goodbye” letter they must also give a particular date when this should take place.

Additionally, in seven to fourteen days later, the law says that you the borrower should receive a second letter, which is a “welcome” letter. This “welcome” letter must contain a welcome message along with the details of your mortgage including a breakdown of your principal, interest, and compound escrow account balances. Likewise, there should be a few payment coupons or a coupon book with address where mortgage payment should be paid. MAKE SURE YOU CHECK WITH YOUR ORIGINAL MORTGAGE PAYMENTS THAT THEY ARE THE SAME NUMBERS.

Both the “goodbye” and the “welcome” letters must have the mortgage loan number. If any of these numbers differ in anyway; call your original banker/mortgage broker IMMEDIATELY! Better safe than sorry.

If you receive only one “goodbye” or “welcome” letter take extra caution. Even if it looks official and everything seems straightforward and legal, you still are advised to call your original banker/mortgage broker. Use their toll-free number because that way you know you are at least calling the right number.

One of the good things about using a Realtor is that they probably help you with obtaining your financing on you new home. Call your Realtor and let them run interference for you. They would love to help you and make sure you are well taken care of not only during the buying process but afterwards too.

Be Careful out there. You are now aware about a scam that can hurt you. It won’t because you are going to know something is fishy if you haven’t received both the “goodbye” and the “welcome” letter.

Cliff Keith is a licensed real estate broker in the State of California since 1976. If you have any question about this article please feel free to call, text, or email from the information you may find on my website at http://SFBayHomes.com 

If you have a need for a real estate broker to help you buy or sell a home I would very much like to help you. I have very many happy clients, some who have left endorsements on my website http://sfbayhomes.com.

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