Unwanted Loan Solicitations.......you're next,but here's how to avoid them!

Unwanted Loan Solicitations…. You’re next, but here's how to avoid them.

 
In this day and age one would think ones' privacy would be taken for granted when applying for a loan. Not only do you bare you soul, you also have your credit report run by the 3 national credit reporting agencies. From the resulting FICO you will have a numerical rating that will help banks and mortgage brokers determine your quality score. There are a number of a factors used in determining your creditworthiness, especially now.

The usual factors of good credit, good employment, and good income, are all important. With today’s lending guidelines’ tightening up and business shrinking, the quality buyer or borrower is highly sought after.

One of the dirty tricks that seems prevalent in today’s market place is to sell your information, without your knowledge. Seems there is either a screen or a check box somewhere that didn’t get checked. Two incidents I’ll relate, one personal, and the other passed on by a mortgage broker, regarding getting sold.

I generally am against getting lots of “stuff” and generally do not elect to receive many of these “free” things you get by signing up for whatever. I am sure you know what I mean on that.

I chose to purchase some clothes online. I had used this company a few times and it was a good experience. All of a sudden I started getting catalogs from companies I had never heard of, and had never done business with. I had to call all these companies, get cancelled off of their mailing list, and throw away a few extra copies of their catalogs, once I had gotten them to take me off their list. There was a hassle for me and a monetary cost to them. Why? The online clothing store had “sold” my name to a company that sells “good customers” to any advertiser that will pay.

Somewhere in some small unnoticed place when I made a purchase, I evidently did not check or uncheck a box that said something like, “share my name with others merchandisers and affiliates”.  I was furious with being deluged with this junk mail and the hassle and invasion of my time and privacy. I called the company I had done business with and castigated them. I felt betrayed and angry. Needless to say their policy, I felt was sneaky, and not open and obvious. If you want to get rid of general solicitations follow this link and the steps.

Another situation, a client had applied for a loan with a mortgage broker. This client had a relationship with this mortgage broker and was not just shopping around. The mortgage broker ran the clients' credit report and quoted the client a rate, and the client was satisfied. A day later the client was called in the evening by another mortgage broker, who happened to be calling from a bar. This other broker whom the client did not know, tried to solicit the client. The client was not too thrilled to be contacted by another mortgage broker, particularly from one at night, from a bar.

That other mortgage broker paid for that “lead” from the credit bureau and was given all the clients’ personal and financial information. These “trigger leads ” come about when your credit report is run, which was done so with permission by the known broker. Needless to say, the client and the original mortgage broker were not pleased by the credit reporting agency’s actions. The above example is a real situation that recently occurred here in Santa Cruz, Ca.

These “trigger leads” will get you a rash of solicitations, some in some fancy envelopes, some as e-mails, and others as direct phone calls, as illustrated. Often they will purport to offer you fantastic rates or terms one can’t find anywhere. They may even have your last loan amount, lending legitimacy to their message. Like most all unsolicited mail, these fantastic claims are often worth far less than the paper they are printed on. I would suspect many who take up these solicitations end up with inferior loans. Our local industry is littered with examples of people being solicited over the internet who end up getting taken by some inexperienced shady lender from down south. Stick with competent, experienced local mortgage professionals, and you’ll be better off. While there are limited

privacy laws

on line, the following site may help give some clarity.

The credit reporting agencies, Experian , Transunion and Equifax, will sell your information without your permission. In their terms of service, you pre- agree or they don’t give you your information. If you contact them directly you have a chance at stopping this or by going to www.optoutprescreen.com and filling out the form. It will take about 5 days to become effective at all 3 agencies.By opting out, this should stop this annoying situation.

Another annoying solicitation method occurs if you have gotten a loan from one of the major banks that have been brokered to, from a mortgage broker. You are likely to get a direct solicitation letter. The mortgage brokers, like an agent, help you evaluate the best choice, in this case for a loan program, and chooses the best one for your needs. Later, that same bank will try to solicit you again, trying to cut out the mortgage broker, when they have a new loan program. Stick with your mortgage broker; they have a broad range or programs from many banks to offer you, not just what one bank offers.

Most good mortgage brokers will be able to beat the price and options of an individual bank. Having a skilled experienced mortgage broker is a great professional to have on your side. With recent onslaught of greed from the banks, and many taking huge financial losses, there is pressure to squeeze out mortgage brokers. This restraint of trade is starting, and is a bad sign, as consumers’ will have fewer and fewer mortgage choices. A great one I use locally in the Capitola area is Woodward-O’Connor Mortgage.

 Stick with local professionals you know and trust in your community. You business means a lot in our small community of Santa Cruz County. You are not just another number in a huge conglomerate, but a valued customer on whom your repeat business and referrals are vital. Because local market conditions are different, there is no way an out of area loan person or real estate broker can be as knowledgable as a local one. If you’d like some experienced help in finding a great home in Santa Cruz, I can help

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