CHARLOTTE, N.C. — If you bought a new or existing home recently and got a mortgage for that home, you might have to have private mortgage insurance or PMI.
You might also soon be getting lots of solicitations from companies seeking your business. Some of those letters make it seem like you might be missing out. Are you?
When you buy a home, it becomes a public record when the deed to it is recorded in whatever county you reside. That makes it easy for businesses to know who is moving, when they moved, and to where.
An employee at WCNC Charlotte gave Consumer Investigative Reporter Bill McGinty several of the letters she received offering mortgage insurance following the purchase of her new home. The letters were off-putting because they seemed official, and made it seem like maybe she was missing something.
For example, one said “final notice; information about your mortgage.” Inside was a form to complete which offered more insurance and warned about death, disability, critical illness, saying that without insurance, she could lose her home.
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Another letter she received said, “urgent reminder, respond within 14 days.” Inside that one, another letter said basically the same thing as the other.
These direct mail companies are fishing for business on behalf of some insurance companies. If you get these in the mail don’t be alarmed -- you didn’t miss anything, and you can just throw them away.
Is it misleading? Is it illegal? Consumer Reporter Bill McGinty asked North Carolina Attorney General Josh Stein that question as his office often gets complaints about this kind of business practice.
“These companies get information about your transactions through public record, and then act as though they have a business relationship with you, or that you failed to do something as part of your real estate transaction that could be detrimental to you, it’s all about creating fear and confusion to try to take your money,” Stein said.
Other states likewise have investigated these companies which often change their names. The name change is a common tactic, it can hide any prior legal action or bad press. To uncover it, you have to dig deeper and do more research.
The WCNC Charlotte employee got five letters with more still arriving. Don’t fall for strong wording on the letter or email. Check with your lender if you have questions.
Contact Bill McGinty at bmcginty@wcnc.com and follow him on Facebook.
WCNC Charlotte is always asking "where's the money?" If you need help, reach out to the Defenders team by emailing money@wcnc.com.