Be aware of mail you get offering that “too-good-to-be-true” deal.
I often receive phone calls from my clients asking about mailers they receive offering too-good-to-be-true deals to refinance their homes. All of them ask if these deals are real.
So let’s start from the top….
About 99% of the time you may think the offer has come from your current lender. But most of the time that is not true.
The large direct mail companies buy lists from courthouses and trick you into thinking they are your current lender. The information they request is all public information, such as
- your name
- your address
- your current loan amount and interest rate
- whether your loan is adjustable
- when a prepayment penalty expires
- your current lender
They also throw in some scam phrases that make you think you have already been approved, but the fine print will say something like:
- “may be approved”
- “may decrease your payments”
- “may be eligible”
Another trick they’ll use is to put file or case numbers on the mailer, making you think it is tied to your loan. In reality, all mailings in a campaign will have the exact same file number, making it easy for them to know which letter you responded to. This allows them to pinpoint the one that tricked the most people so they can re-use it in the future.
I saw a letter the other day that used the phrase “Entitled Homeowner”, making it sound like it was some special government program.
Other letters may say that there are only a certain number of people who are eligible and that the offer “expires” in two weeks.
No programs exist that allow only a certain number of people to participate or that have some sort of magic “window of opportunity” date. These are all deceptions and lies.
None of these is in your best interest(s). You can see the problem that arises in that your letter could be one of many scams with hidden fees and one that is going to put the most money in the mail marketer’s pocket.
BUT WAIT! If you just throw it away, it could be a real honest offer – one that would be in your best interest.
So what should you do? Well…to help you decide if the offer you received is legitimate or is right for you, give me a call and I’ll take a look at it with you. In fact, we can do this right over the phone. Or if you prefer, feel free to fax, email, or even snail mail it to me.
I will review it with you to find out if this is something that will be of benefit to you or if it is just a scam. This will only take about 10 minutes of your time and will cost you nothing. Plus, you will be getting an expert’s opinion.
Michelle Castle provides mortgage loans to all of North Texas and Southern Oklahoma. Call Michelle Castle at (903) 892-1998 if you are looking for a home loan in North Texas and Southern Oklahoma.