Beware of Common Mortgage Refinance Scams

Have you gotten a letter in the mail telling you to refinance and to call a phone number? Sometimes these letters will include your mortgage loan number, which can make you worry or question what’s happening.

Chances are, it’s a scam. Read about the mortgage refinance loan scam, and how to protect yourself.

Refinance Scam

This scam is designed to steal your personal information and money. A fraudster will send you a letter that mentions your lending institution, telling you to refinance your mortgage loan. The letter also includes your specific mortgage loan number, loan amount, and directs you to call a phone number.

The letter might also direct you to fill out a form or wire money to get started. In a similar scam, a fraudster might ask you to sign over your home’s title to a company or individual for help – do not do this!

Here’s the Truth

Your lending institution will communicate directly with you about any legitimate changes to your mortgage loan. If you ever needed to modify the terms of your loan, or refinance, that is something you would initiate with your lender. This communication will not come from a third party.

How to Protect Yourself

Guard your personal information! The refinance information on these letters can look convincing – it might have a lower, appealing interest rate and terms. But these criminals are trying to get your date of birth and Social Security number to steal your identity, or sell it to someone else. Be on alert and do not give out any information! If you’re questioning the legitimacy of the letter, contact your lender directly.

Overall, be on the lookout if you receive any sort of letter, email, text message or phone call, from a third party instructing you to do something with your mortgage loan. If the communication is not coming from your current lender, or you aren’t familiar with the company, end the communication immediately.

We’re here to help you protect your finances. If anyone has tried contacting you for your personal information, or if there’s anything we can assist you with, please don’t hesitate to contact us.