Have you received a letter in the mail that looks like it’s from your mortgage company warning you that your home warranty is about to expire? You’re not alone — and more importantly, you’re not in danger of losing your coverage. These letters are part of a long-running scam that preys on homeowners, especially new buyers.
At VanScoter Insurance, we recently had a client contact us about one of these letters. It came in official-looking packaging, mentioned their mortgage lender by name, and used urgent language to try to force a quick decision. But it was 100% a scam. Here’s how to recognize one of these fake letters and what to do if you get one.
🔖 How to Spot the Scam
These home warranty scam letters are designed to create panic. They often include:
1. Urgent Language
- Phrases like “Immediate Response Required,” “Final Notice,” or “Service Interruption Pending” are used to create fear and urgency.
2. References to Your Lender or Mortgage
- They might list your actual mortgage company to make it seem legitimate. But this info is often pulled from public records.
3. Misleading Branding
- The letter may appear to be from Fannie Mae, Freddie Mac, or another mortgage servicer, but fine print will often say they are “not affiliated” with any mortgage lender.
4. Instructions to Call a 1-800 Number
- These numbers connect you with call centers that pressure you into buying bogus coverage or giving up personal financial information.
5. Fine Print or No Return Address
- Scammers often avoid traceable contact information and rely on shady disclaimers to protect themselves legally.
📄 What You Should (and Shouldn’t) Do
DO:
- Shred the letter or throw it away.
- Contact your mortgage lender directly if you’re unsure whether a notice is legitimate.
- Report the scam to the appropriate authorities (more on that below).
- Share this info with neighbors, especially first-time homeowners or elderly residents who may be more vulnerable.
DON’T:
- Don’t call the number listed in the letter.
- Don’t give out your personal or financial information.
- Don’t send any money or sign anything.
🔒 How to Report the Scam
If you’d like to take the extra step to report the letter, here’s how:
- Federal Trade Commission (FTC):
- Visit reportfraud.ftc.gov and follow the prompts.
- New York State Attorney General’s Office:
- File a complaint online at the official website or call their Consumer Frauds Bureau.
- United States Postal Inspection Service (USPIS):
- If the letter came through USPS, you can also report mail fraud at www.uspis.gov.
