got junk mail?

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Owning your own home is a wonderful thing, but it does have its drawbacks. For instance, when renting an apartment, there are things that you don’t have to worry about such as normal upkeep on the home, maintaining a yard, etc.  Now that you own a home, you get to “enjoy” those aspects to their fullest potential.

An additional frustration is junk mail.  It doesn’t matter how you answer the privacy policy questions with your lender, you will still receive more junk mail. Here are some reasons why:

#1 – When you take out a mortgage to buy a home, the mortgage information is placed in public records and is recorded at the county courthouse.  The transfer of title is recorded in the form of a Warranty Deed and the fact that you have collateralized the property with a mortgage is recorded in the form of a Security Deed. Since this information is in public records, anyone (and I mean anyone) can access it. Companies and solicitors have access to your name, your property address, your lender/investor, whether or not your loan has Private Mortgage Insurance, or PMI, and your original loan amount.

Junk mailers and solicitors gather the information from the courthouse (or purchase it from a directory-consumer list company) and use it to send you everything from coupons, to flyers, to notices about refinancing.  Some of the refinance and second mortgage solicitations are the worst and most misleading going so far as using phrases like, “Please call immediately concerning your Hillside Lending mortgage . . .

#2 – A lot of loan services offer ancillary services as part of their affiliate companies.  The most popular (and in my opinion, the most annoying) seems to be the mortgage-life-insurance product sold TO the consumer as a way “to protect their loved ones”.

Please don’t misunderstand me. I DO think that it is a good idea to have enough life insurance to cover your mortgage balance, but there are better options than mortgage-life-insurance. Mortgage-life-insurance is usually a declining value life insurance premium that decreases at the same pace as your mortgage balance. In the event of your death, the policy is used to pay off the mortgage and nothing more.  A better investment of your time and money would be looking into getting term life insurance that never declines in value.

#3 – Depending on how a privacy policy statement is worded, the lender may still be able to share some of your information.  This is a particularly frustrating point to consumers who do their best to protect their information.

In summary, congratulations on buying your new home, but get ready for junk mail. Some of these offers are scams, and the “legit” ones are typically not a great deal for you to use.  So, be careful.  Hide the women and children.  They are coming…

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One Response to “got junk mail?”

  1. Junk Mail | The Mortgage Blog Says:

    […] said, when you get a new mortgage, you are opened up to new and different types of junk mail. I first blogged about this in 2011. Since the home buying market has picked up this year, I’ve been receiving more calls […]

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