Curious “Check” Hides Important Mortgage Questions
Near where I write these words sits a check for almost $50,000. Well, it sure looks like a check when seen through an envelope window, and the envelope in which it came certainly has a lot of important-sounding language on the outside. In fact, if not careful you might mistake the envelope for those used in official mailings by the federal government.
I’m not sure how unique the mailing is, however. The item was sent with bulk rate postage and — what do you know — the tracking number on the envelope was the very same one used in a similar mailing last month.
As to the object in the envelope, it sure has some check-like elements — a signature line, a greenish print background, a “pay” command, and my name and address. Alas, the check-like item, whatever it might be, is “non-negotiable,” “non-transferable,” “non-toxic,” “non-habit-forming,” and perhaps even “non-fat” — notices somehow not visible in the envelope window.
The good folks who sent this missive would like me to borrow money from them. Yes, I might qualify to borrow $50,000 with my home as security for the debt — or maybe even more. Of course, the letter does not represent a loan commitment and I might not qualify to borrow a dime, but such details are hardly prominent in the letter.
About those details. Did I mention the interest rate? I don’t know what it might be because no rate is mentioned. The length of the loan? Closing costs? Possibility of a balloon payment? You can hold the letter up to the light, read between the lines, fold it, mutilate it, and spindle it and still not find such information. For all I know, the loan could be a one-year balloon at 19 percent interest with $12,000 in closing costs.
If you read the small print, it turns out that I had the good fortune to be selected for this exciting financial opportunity because my name set off the right bells with various credit reporting agencies. Interestingly enough, such agencies have “opt-out” programs to prevent the distribution of consumer names for certain solicitations.
You can find more information regarding opt-out programs by visiting OptOutPrescreen.com. The information is very clear and there’s no cost or obligation.
As to that $50,000 check-like thing, I don’t think I’ll spend it — though several years ago a gentleman in California did cash a $95,000 promotional check delivered through the mails, no doubt much to the chagrin of the party that sent it….
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Published originally by Realty Times on September 9, 1998 and posted with permission.
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