By Rae Oakley, Flyhomes Mortgage
Just moved? Too much junk in your new mailbox? We have the scoop on why and how to handle it.
When you buy a home, one of the documents in your closing package is the deed of trust, which gives your lender an interest in your property. This document is filed with the county, making several key pieces of information public record, including:
–The name of your mortgage lender
–The borrower of the mortgage (your name)
–The loan amount
–The loan number
–The property address associated with the loan.
Because this information is now public and available to a variety of home servicing companies, it’s highly likely that you’ll start receiving print mail featuring product ads, service deals, and maintenance programs.
Some of the most common are:
–Cable TV and high speed internet offers
–Maintenance services like lawn upkeep and snow removal
–Home security systems
–Life insurance offers
–3rd parties that provide biweekly payment services
–Home furnishing coupons and discounts
Look out for scams
Since the name of your mortgage lender is available on the public record, a company advertising to you might pose as that company. Be on the lookout for ads and mailers that don’t explicitly say the company’s name but instead place the logo of your mortgage company front and center on their collateral. They might try to upcharge you for “autopay” deals and other scams.
Clean out the junk
There are ways to reduce the amount of junk arriving at your mailbox. The first option is to use the Direct Marketing Association’s (DMA) Mail Preference Service. By paying $2, you get 10 years of mail monitoring services, allowing you to filter which mail you do and do not want to receive.
On top of that, unless your home’s prior owner submitted a change of address form with the post office, you’re also probably receiving their mail. Your first line of defense in stopping this mail stream is to write “Return to sender” directly on the envelope and place it back in the mailbox. This signifies to the carrier that the addressee no longer resides at your address.
You can also fill out a change of address card for the prior occupant of your home. These are available at your local Post Office (the online submission requires a forwarding address). Fill out the name and address of the person no longer at your address, and be sure to mark “form filled in by current resident, [Your Name], agent for the above.” Give this to the post office attendant or right to your carrier for processing.
Not junk: Notification when your loan has sold
If your mortgage lender sells your loan, you’ll likely get mail letting you know. Selling a loan happens when a lender makes the loan up front and then puts it on the open bond market for one of the major mortgage investors (Fannie Mae, Freddie Mac, etc) to purchase.
Sometimes, the purchaser of your loan might also be selling the servicing rights of your mortgage to a third party servicing company. This is important for you to know, as it has the potential of complicating your monthly mortgage payment.
Also not junk: Mail about property taxes
It’s also possible that you’ll get a property tax bill in your mailbox. If you chose to escrow your property taxes, your lender will pay this on your behalf from the balance in your escrow account. We recommend following up with your mortgage company to confirm that the bill is paid, just to be sure, and also taking a look at the bill itself to see if your property taxes have gone up since you set up your escrow account.
Every year, your mortgage lender is required to analyze your account to make sure they’re not over-collecting, but it’s also a best practice to keep an eye on your taxes so there are no surprises when it comes to your monthly housing payment.
Thinking about buying a home?