The Spam & Scams After Buying Your First Home
scam new home buyer letters

Lessons From a First-Time Home Buyer: The Spam & Scams After Buying

In case you missed it, I recently kicked off a new “Lessons From a First-Time Home Buyer” series here on Fioney. Although I will cover major topics and share my own experience with them throughout this series, I also want to highlight some aspects of buying a home that I had never heard of before and was shocked to discover.

That’s exactly what I have on tap today as I want to discuss the sheer amount of spam and scams you face after purchasing a home.

My Experience with Spam and Solicitations as a Homebuyer

Our first spam letters

When we signed our closing papers, our mortgage broker and the title company employee warned us that we’d likely be getting a lot of junk mail that might look official and important but wasn’t. They even advised that, unless it had our mortgage company’s actual logo on it, it was probably nothing. This was the first time I’d ever even considered such a thing — but, boy, were they right.

Some of the very first mail we got to our new house was, well, crap. But, as promised, there were elements of it that seemed to imply it was legitimate. For example, most of these letters and notices named our mortgage company on them. Furthermore, they even knew exactly how much our loan was for. These elements somehow made the typical scare tactics like slapping “Final Notice” on the envelope work a bit better.

How it works

Alas, the truth is that this information is public record. Therefore, it’s not hard for these companies to obtain and target you effectively. Plus, since this is probably their whole business, I have to imagine that these are largely templates that they just plug the details into.

What are they?

So what are these solicitations? Well, to be honest, I’m not 100% sure since I didn’t follow up with any. Two of the letters (seen in my featured image above) simply say they’re from a “Servicing Center” with no real info. Meanwhile, some others suggest that it’s a type of life insurance. What does life insurance have to do with a house? I suppose the idea is that, if you were to pass away, the policy would help your surviving family pay off your mortgage. That’s actually not a bad idea — but I’m certainly not going to buy a policy from a company that takes this tactic.

What to watch for

Interestingly, for as much effort as these companies go through to make it look as though these letters are coming from a company you already work with, there are some clear signs that they’re not. Presumably to stay on the right side of the law, there are some disclosures that can be found on some of the notices I received.

Looking at the fine print on one, it flatly states, “Loan information is obtained from public records and is not provided by any lender.” Similarly, another one notes, “Not affiliated with or sponsored by any bank or lending institution.”

By the time I read these statements, I was already 90-something percent sure these were spam, but the confirmation was definitely nice to have. Of course, there’s also no guarantee that every piece of mail or other solicitation you receive will be as law-abiding. Thus, it’s important to be vigilant even if these disclosures aren’t present.

But what if it’s real?

What’s perhaps even worse is that the deluge of spam may cause you to ignore legitimate updates. For example, when my wife handed me a piece of mail we received at the house, I was fully prepared to just throw it away. Instead, it turns out that it was a real letter from Freddie Mac informing us that they’d purchased our mortgage (a story for another time).

In a similar vein, my wife got a text message in regards to someone surveying our home allegedly at the request of our insurer. While some parts seemed to add up, the whole thing still seemed a bit scammy. Plus, when we logged into our insurance policy, there weren’t any notices about such a thing. Luckily, we were able to talk to our insurance broker and discover that, indeed, this was legit. Had we ignored these messages as we initially intended to, we may have ended up getting dropped by our insurer — which would not have been good.


Although many of us are likely familiar with robocalls regarding car or home warranties (that you probably don’t have), I had no idea just how much spam I would receive upon closing on a home. The good news is that, with the assistance of a heads-up from our title company and mortgage broker, we found it fairly easy to spot these unwelcome solicitations for what they really were. On the other hand, our vigilance also nearly led us to write off legitimate correspondence as we had grown predisposed to assuming everything was junk!

The bottom line is that, as a new homeowner (and especially a first-time one), you can expect to receive a mix of both important and thoroughly unimportant mail. Because of this, I’d recommend taking a closer look at everything you receive and determining which is which. In the event you can’t figure it out on your own, Googling can go a long way — and, if you have an agent, mortgage broker, or other professionals you’re working with, they may be able to advise you as well.

Author

Kyle Burbank

Head Writer ~ Fioney
Kyle is the head writer for Fioney. He is a personal finance nerd, constantly looking for new apps and services to test and incorporate into his own financial game plan. In addition to his role at Fioney, he's written for other publications including Born2Invest, Lifehack, and Laughing Place, as well as his own site Money@30. He also creates personal finance and travel-related videos for Fioney's YouTube channel, which has garnered more than 2 million views. Currently, Kyle resides in Springfield, Missouri with his wife of 10 years. Together, they enjoy traveling (including visiting Disney Parks around the world), dining, and playing with their dog Rigby.

Other Articles by Kyle Burbank

Teal logo

Accounting Infrastructure Startup Teal Raises $8 Million

A FinTech offering accounting infrastructure tools for vertical SaaS businesses to adopt has announced its seed round. About the round: Today, Teal announced that it had raised $8 million. The seed round was led by Torch Capital, while Basis Set Ventures, General Advance, and Dash Fund also participated. Additionally, execs from Plaid, Brex, Gusto, and others are among the angel investors contributing to the round. This is the startup's first publicly...
2 Qatar Airways Privilege Club Credit Cards

Cardless Launches Two Qatar Airways Co-Branded Credit Cards

The FinTech startup Cardless is partnering with Qatar Airways to offer two new co-branded cards to the American market. About the cards: Recently, Cardless introduced its two latest rewards credit cards: The Qatar Airways Privilege Club Signature Card and the Qatar Airways Privilege Club Infinite Card. Starting with the Signature card, it earns 4x Avios on Qatar Airways purchases plus 2x Avios on dining purchases, and 1x Avios on all...
Yendo logo and credit card

Vehicle-Secured Credit Card Company Yendo Raises $165 Million

A FinTech that offers the first-ever credit card secured by a customer's vehicle has announced its latest round of funding. About the round: This week, Yendo announced that it had raised $165 million. However, this includes $150 million in debt financing and $15 million in equity. The debt portion was led by i80 group, while the strategic investors that participated in the equity round were not disclosed. Yendo previously raised...
The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox

A Guide to Building Credit and Increasing Your Credit Scores

When it comes to credit, there’s some good news. The average credit score in the United States has been steadily rising in recent years, coming in at 715 in 2023. That may be because, today, consumers not only have more ways to access their credit reports and scores than ever before but also because there are an increasing number of options that Americans have for building credit in the first...

2024 SoFi Checking and Savings Review

Ever since I started taking an interest in the FinTech sector, one company whose name I’ve seen pop up over and over again is SoFi. Lately it seems as though that theme has been sent into overdrive as the company has not only become a household name thanks to its stadium naming rights deal but also because of the company’s continued product expansions. The most interesting development in my mind...
Brim logo

Brim Financial Raises $85 Million as It Eyes Global Expansion

Toronto-based FinTech infrastructure startup Brim Financial has announced a new funding round. About the round: Brim has revealed an $85 million round. The Series C was led by EDC Investments while new investor Vistara Growth and returning investors White Owl Group, Epic Ventures, and Zions Bank also participated. To date, the company has now raised $110 million including a Series B in 2021. According to Brim, the latest funding will...
Chase Freedom Flex card

Chase Reveals Q2 2024 Freedom 5%(+) Bonus Categories

Chase has announced its bonus category picks for the second quarter of 2024 — including some interesting twists. About the categories: As April approaches, Chase has revealed what categories Freedom and Freedom Flex cardholders can earn bonuses on. From April 1st through June 30th, customers can earn 5% (or more) in three categories: Amazon.com, Hotels, and Restaurants. Similar to how Chase embraced a "New Year, New Me" theme last quarter,...
Rent Day

Bilt Announces Home Collection Deal for May 2024 Rent Day

For May's Rent Day, Bilt is offering a deal that will allow members to decrease their rent bill while also adding to their home decor. About the Home Collection offer: Bilt has crafted a unique Rent Day offer for May 2024. Through the 1st, when Bilt members redeem their points toward rent payments, they'll receive the same number of points to be used toward Bilt Home Collection items. To take...