Laguna Beach Real Estate

Borrower Beware: There’s a New Scam in Town

Borrower Beware: There’s a New Scam in Town

You made that mortgage payment again! Took that hard-earned greenery from your bank account and whisked it to your friendly lending institution. Another mortgage payment for your beautiful Laguna Beach home is successfully in the books! Congratulations! You’ve purchased one more month of home ownership.

Then about a week or so later you get the call. It is from your friendly bank rep. “Where’s our money,” probes Mr. or Ms. Rep, ever so politely. “What are you talking about? I sent it about a week ago.” You tell them where it was sent. “Uh…That’s not our address,” corrects the rep. “It’s not even us.”

“But I got this letter. It told me to forward my mortgage payments to this new company. Said my loan was sold to them.”  Sympathetically, the rep tells you the letter was bogus. The loan was not sold. Realization crashes down on you. Sorry, Charlie. You’re the victim of the latest mortgage scam.

Incredibly, scenarios just like this are taking place not only in Laguna Beach or Orange County, but nationwide. And it is happening more and more often.  Basically, a con artist fires off an ‘official’-looking letter to an unwitting homeowner. The letter instructs the wide-eyed recipient to start sending their mortgage payments to a new company. Supposedly, this second lender has taken over the management of your loan. Just one problem — the new company is 100% fictitious; a fraud.

Borrowers who fall for this scam typically relinquish a few unintended donations before they realize a big clump of wool has been yanked over their eyes. By then, they’re one or more payments in arrears. And the real lender is stepping up the phone calls.

These skillful con artists are banking on a single fact — most borrowers have no idea what to expect when a loan is sold legitimately to another institution. But, of course, you won’t be one of the people in the dark. Why? Because we’re offering you, free of charge – Scam Prevention 101. Pay attention, or pay the price.

Legally, you must receive two letters when there’s a management transfer. The first from the original loan administrator such as Bank of America or Wells Fargo. This tells you about the transfer, as well as where and when to re-direct your mortgage payments. About a week later, you’ll receive a second letter. The sender is none other than the new management company. They’re giving you a big welcome, as well as all the loan details you ever could want to know. They might even generously pack in a few payment coupons and company envelopes, just so you don’t get stuck paying for these items. Remember, one letter doesn’t count. If you don’t get a pair, become Sherlock Holmes and investigate.

Make sure both letters include your loan number. If this crucial info isn’t supplied, or if there’s a mismatch, call your original servicer for an explanation.

Even if everything checks out, contact the original servicer anyway. You just never know.

Congratulations! You’ve passed Scam Protection 101!

But we’re still available for questions, so feel free to reach out to us. After all, we want to make sure you’re good and prepared when you buy your Laguna Beach home. Naturally, we’ll be delighted to help you get started. As experienced professionals well-acquainted with this prime beachfront community, we can answer all of your questions and help you discover the numerous opportunities the Laguna Beach real estate market has to offer.

Until next time, keep it classy, Laguna.

Feel free to contact us at Prudential California Realty 1.949.922.8490 or email: hillary@thecoastalpropertyexperts.com.

Regards,
Hillary Caston & Associates – The Coastal Property Experts