When it comes to mortgage lending & false advertising, the most common “bait and switch” scam comes in the form of direct mail. While these mailers might not technically be illegal if the sender correctly discloses the necessary information. But they almost never do and are almost always predatory.
Direct mailers virtually always overpromise and underdeliver by design. The senders usually send a mass amount of semi-personalized fliers targeted to certain zip codes based on their criteria – not your specific loan scenario. Sometimes they are also marketed to specific segments of the population which may be more vulnerable to falling for these marketing campaigns.
Mailers often include other shady tactics. They look like they are coming from your current lender’s office or they will include a certain loan program even when they know you are not currently eligible for it or will advertise that mortgage payments can be skipped and/or that no fees exist. The most common one is when they will advertise a limited-time-only “special offer” but it is not really available.
The best solution to confirm if something is legitimate or not (other than avoiding it altogether) is to send it to your Mortgage Loan Originator and ask them about it. They can point out all of the potential issues with the mailer and depending on how predatory it is or is not, and can even report the solicitor. It is important to keep in mind that when something is too good to be true, it usually is.
If you have questions about getting pre-approved or your current mortgage, give us a call at (760) 930-0569 and one of our experienced Mortgage Loan Originators would be happy to discuss the best mortgage financing path forward for you.
