Stay Alert: Top Consumer Scams to Watch Out for After Home Closing

Stay Alert: Top Consumer Scams to Watch Out for After Home Closing

 

 

 

 

 

 

 

 

 

 

 

 

Congratulations on closing on your new home! While this is a time for celebration, it's also crucial to be aware of the various consumer scams targeting new homeowners. Scammers often prey on the lack of experience of new homeowners, especially in areas like home repair and mortgage services. Let’s explore some of the most common scams to watch out for and how to protect yourself.

 

 

 

Mortgage and Insurance Scams:

 

 

Unsolicited Loan Offers

After closing, you might receive offers for refinancing or loan modification from companies other than your lender. These offers, often arriving by mail, email, or phone, may promise unbelievably low rates but often come with hidden fees or unfavorable terms. Always verify the legitimacy of such offers with your original lender before responding.

 

 

Insurance Fraud

Be wary of calls or mail suggesting that your home insurance is inadequate. Scammers posing as insurance agents might try to sell you overpriced or unnecessary coverage. Always consult with your established insurance provider or a trusted agent before making any changes to your policy.

 

 

 

Home Repair and Improvement Scams:

 

 

Too-Good-to-Be-True Contractors

After moving in, you might consider some home improvements. Scammers posing as contractors often target new homeowners, offering deals that are too good to pass up. These fraudulent contractors may demand upfront payment and then deliver subpar work or no work at all. Always research and verify the credentials of any contractor you consider hiring.

 

 

Utility Scams

Scammers might impersonate utility company representatives, claiming your services will be disconnected unless you make an immediate payment. Utility companies usually provide ample notice and multiple ways to address overdue bills. If you receive such a call, hang up and contact your utility provider directly using the contact information on their official website.

 

 

 

How to Protect Yourself:

 

 

Verify All Communications

Whether it's a mortgage, insurance, or utility-related matter, always verify the source. Contact the company using a phone number or email address you know to be legitimate, not the contact details provided in the suspicious communication.

 

 

Do Your Research

Before hiring any contractor or agreeing to any service, do thorough research. Check for licenses, read reviews, and ask for references. It’s better to take your time than to rush into a decision that could cost you.

 

 

Never Make Rushed Payments

Scammers often create a sense of urgency to bypass your better judgment. Always take your time to confirm any payment request's authenticity, especially if it's unsolicited or unexpected.

 

 

Being a new homeowner is an exciting journey, but it’s important to stay vigilant against potential scams. By being aware and taking precautionary measures, you can protect yourself and your investment. If you ever have doubts or concerns about potential scams, don’t hesitate to reach out to us for guidance. Stay safe and enjoy your new home with peace of mind.

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