As we navigate a changing economy, we’ve noticed a surge in aggressive telemarketing targeting homeowners – particularly those in their retirement years. These callers often promise “financial freedom” or “lower monthly payments,” but the reality behind these offers can be much more dangerous than it sounds.
The Hidden Trap: Moving Debt to Your Home
The most common pitch involves taking high-interest debt (like credit cards) and rolling it into a new mortgage or home equity loan. On the surface, a lower interest rate sounds like a win.
However, there is a fundamental danger here: The shift from unsecured to secured debt. If you have a credit card balance and fall on hard times, the bank cannot simply take your house. But the moment you use a mortgage to pay off that card, that debt is now secured by your home. If a financial crisis happens and you cannot make the new mortgage payment, your home may be at risk at risk of foreclosure. For our clients, protecting your home is a high priority. We strongly recommend that you do your own due diligence on the risks associated with using your primary residence to pay off unsecured bills.
How to Spot a Telemarketing Scam
Not every caller is a “scammer” in the legal sense, but many use predatory tactics. Watch out for these red flags:
The “Urgency” Play: They claim you must act now to lock in a rate or “government benefit.”
Verification Requests: They ask for personal information such as your Social Security number or existing mortgage details to “confirm your eligibility.”
The “Official” Disguise: They may use names that sound like government agencies (e.g., “The Homeowners Relief Department”).
Sketchy Contact Information: They may have spoofed telephone numbers or non-business email address domain names (e.g. ABC Mortgage.Co.@gmail.com).
Your Protection Checklist
If you receive one of these calls, remember these three steps:
1. Hang Up and Research: You are under no obligation to stay on the line. If you are interested in a service, find the company’s official website independently and look for verified customer reviews.
2. No Phone Agreements: Never agree to a financial contract over the phone under pressure. A reputable company will send you documentation to review at your own pace.
3. Consult Your Trusted Advisors: Before making any change to your home’s title or mortgage, we encourage you to contact NLC or other trusted professional. We can guide you to help you make the best decision that fits your situation and to make a determination if you are being steered into a predatory product.
Your home is likely your most valuable asset and we don’t want to see it exposed to any unnecessary risk.
If you have questions about a call you received or want to discuss a “too good to be true” offer, reach out to our office today.
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