Closing on a home should be a celebration, but scammers see it as an opportunity to strike. Fraudsters target new homeowners with convincing scams designed to steal money or personal information. Below are common post-closing scams to be aware of:
Mortgage Payment Scams
After closing, new homeowners begin receiving mail and emails regarding their loan, but not all messages are real. Scammers send fake “welcome letters” that appear to come from a lender or loan servicer, with instructions to update payment information or send their first mortgage payment to a new address.
How to stay safe:
- Verify payment instructions directly with the lender using the contact information listed on official closing documents.
- Avoid clicking on links or scanning QR codes in unsolicited emails or letters.
- Keep copies of all original loan documents, which contain the lender’s confirmed contact details.
Fake/Misleading Mortgage Insurance or Warranty Offers
Many new homeowners receive offers for “mortgage protection”, “home warranty renewals”, or “record of deed” referencing loan details or closing dates.
How to stay safe:
- Look out for phrases such as “Final Notice” or “Immediate Action Required.”
- Purchase insurance or warranties only through verified and licensed providers.
- The county recorder’s office does not sell copies of deeds by mail; homeowners automatically receive a copy after closing.
Property Deed and Title Fraud
In title and deed scams, criminals use stolen personal information to forge signatures and illegally transfer ownership of a property. Once fraudulent documents are recorded, scammers may attempt to take out loans against the home or sell it without the owner’s knowledge.
How to stay safe:
- Monitor property records through the county’s official website.
- Stay alert for missing property tax bills or unexpected notices from lenders.
- Consider title monitoring or identity protection services to detect unauthorized activity.
Home Improvement or Contractor Scams: Unlicensed contractors target new homeowners, claiming to have discovered urgent issues with roofing, plumbing, or the home’s structure. These scammers demand large deposits before disappearing without completing the work.
How to stay safe:
- Confirm contractor licenses through the state’s verification portal.
- Avoid paying the full amount upfront.
- Be cautious of door-to-door offers or individuals claiming to be “working in the neighborhood.”
Property Tax or Utility Scams
After closing, homeowners may receive letters claiming they owe additional property taxes or fees to activate utilities. These scams include real property details to seem official.
How to stay safe:
- Pay property taxes only through the county treasurer’s office or an established escrow account.
- Recognize that utility companies never charge activation fees by email or text message.
- When uncertain, confirm details directly with the county or service provider using official contact information.
The Bottom Line
Staying cautious, verifying information, and working with licensed professionals are the best ways to stay protected. For questions or trusted guidance, contact Bluefire Mortgage Group at (760) 930-0569 to speak with one of our Mortgage Loan Originators.
