It’s completely normal to receive mail addressed to a previous occupant after you buy a home, and you may even notice an increase in spam, such as ads for lawn care, a home warranty, home remodeling, or housekeeping. of pests.
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Closing on a home creates a public record, so anyone can access and obtain information about you and your property. this includes your full name, address, and loan amount.
but although many companies buy information to advertise legitimate services, they are not always transparent about their services. in addition, others buy information in order to defraud the owners.
here are the different types of spam you can get after buying a home and how you can protect yourself.
1. mortgage protection insurance (mpi) advertisements
Soon after you close on your mortgage, you’re likely to receive a flood of spam about mortgage protection insurance (MPI).
This type of insurance pays your mortgage balance if you die or become disabled. And to be clear, this is legitimate protection. But even though these offers may appear to be from your mortgage lender, they’re actually from insurance agents.
Mortgage protection insurance is a type of life insurance policy. however, instead of listing your family as a beneficiary, the beneficiary is your lender. so the insurance policy pays your lender directly. the problem, however, is that this type of policy lacks flexibility.
Your family can’t use the funds for other expenses, plus the policy has a declining payout. Even if your premium stays the same, your payment goes down as your mortgage balance goes down. in which case, it might be best to purchase a whole life or term life insurance policy.
You can select a death benefit that is enough to pay your mortgage “and” provide your family with ongoing financial support.
2. spam/ads that look like an invoice
Some spam may even look like a legitimate bill or notice from your mortgage lender. in fact, some shady advertisers will even use your lender’s logo to trick you.
When it comes to content, a company might offer a service like setting up automatic payment or a bi-weekly payment schedule, and then charge you a fee for this. however, you can set up these services directly with your lender at no cost.
A fraudulent company could also send a false invoice, claiming that you must pay the amount to register the mortgage with the city, receive a property profile, or obtain the deed to your home. this is a scam, however. the company disappears once you send the money.
3. announcements of lower rates and payments
You may receive an email stating that you qualify for a lower mortgage rate and monthly payment, and you will be instructed to call a certain number to claim your offer.
again, this email may appear to be coming directly from your mortgage lender. however, their loan products are often advertised by another mortgage company.
If you call to ask about a lower rate and payment, they will offer to refinance your mortgage with their company or get another mortgage product, like a home equity loan.
How can you protect yourself from mortgage spam?
Although you will receive an avalanche of spam after closing a house, never assume that every email is spam or advertising.
Your mortgage lender will also send legitimate information in the mail, especially if you haven’t requested eStatements. still, it’s important to recognize spam or ads.
Always read email carefully, including the fine print. if it’s spam or an advertisement, you’ll likely see “selling” words or language like “act now,” “best offer,” “don’t hesitate,” or “limited number.” Note that ads often include a disclaimer in very small print that reveals the marketing material, usually near the bottom of the page.
It’s also important that you don’t send money or share personal information when you receive spam. If in doubt, contact your lender, using the numbers listed on their website, to confirm the legitimacy of the suspicious email.
You should also shred spam ads to keep your personal information safe. In addition, there is the option to opt out of receiving ads: optoutprescreen.com or call 1-888-5-opt-out (1-888-567-8688).