Mortgage Scam Hits Virginia

If you’re a homeowner who has an existing mortgage, beware (and if you’re an agent or broker, you may want to pass this on to your clients). A mortgage scam going around the country has made it to Virginia.

The scam involves receiving a "hello" letter in the mail saying something like,

Dear (insert your full name here),

Your mortgage has been sold to (insert name of a reputable lender here). Beginning (the first of next month), please remit payment to the following address:

(insert name of reputable lender here), P.O. Box (XXX), (city, state and zip code)

The letter may seem valid and very real with further language such as,

"Your terms and rate will not change whatsoever. The only thing that will change is the address where you sent your payment. If you have any questions, feel free to call (insert phone number here)."

What may actually be happening is that you’re sending your mortgage payment to a scam artist that collects your check, cashes it and runs off with your money. Often times, the P.O. Box is forwarded to an overseas "boiler room" address that’s controlled by scam artists. You will not only lose your money, but your existing mortgage company will come after you for non-payment.

Your mortgage being sold to another lender or servicing company is not uncommon. But you should receive a "goodbye" letter from your existing lender before you receive a "hello" letter from the new lender/servicing company.

If you have not received a "goodbye" letter from your existing lender prior to receiving a "hello" letter, contact your existing lender to confirm that your loan has been sold before you send any payments to the new lender. You will need your loan number to confirm the change so have that ready before you call.

And don’t worry…you have up to 60 days after your loan has been sold to send payments to the original lender before having to send it to the new lender. That gives you plenty of time to contact your existing lender to confirm the change while continuing to pay your mortgage payment on time to your existing lender.

Note: Even if you have received a "goodbye" letter, it may be a good idea to verify your loan has been sold prior to sending a payment to the new lender/address.

And if you do find out that you’ve received a bogus letter that’s actually a scam, let your lender know immediately.

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7 Responses to Mortgage Scam Hits Virginia

  1. Jim Duncan says:

    What’s old is new again it seems. I’ve heard stories of this happening before I got in the business, and it seems that it’s making a return.

    Thanks for the heads-up.

  2. Danilo, Thanks for letting all of us know about this. I have also been getting something similar with my credit card. The automated call states that your Visa or Master Card is being moved to (name of company) please dial (number) and confirm your information. I asked my bank if this is real and they know nothing about it.

  3. Are you kidding me? The lengths that criminal minds will go to never ceases to amaze me. Think of the legit success they could have if they applied that creativity elsewhere….

  4. Bill, I have gotten those same calls. There’s always a scam somewhere. While you don’t want to scare your first time home buyer with this kind on new, you are obligated to keep them informed. At least I feel obligated to do so.

    Many of my co-workers love to keep quiet about any bad news. You certainly shouldn’t be a negitive Nellie but it’s a great feeking when something tries to come back and bite you only to find out you have ALL you bases covered.

    Keep your clients informed. You owe it to them.

  5. It is sad that people have to resort to this sort of scamming. I mean really, get a job.

  6. Dave Woodman says:

    As a Virginia Realtor of 24 years, it is imperative that we keep the public aware of these things. In this kind of ecconomy we will see more of this. Let’s all help keep each other informed and passing the information along.

  7. don says:

    scams are all around. i even received call from fake bankers too claiming that they offer mortgage loan.The funny part was they werent not speaking ENGLISH.As in my country.bankers are suppose to speak english.They know most of my information, my name, my address etc.the even more weird part was they said the conversation is recorded as a proof. blah blah blah

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