Reverse mortgage Lenders

Top Reverse Mortgage Lenders

Choosing a reverse mortgage lender it a vital part of the process. There are many different reverse mortgage lenders both locally and nationally. Just like any other industry there are people who are deceitful and dishonest looking to scam you. When looking for a reverse mortgage lender, be aware of these five scams.

Foreclosure scams – This scam involves a criminal going after a senior who is in foreclosure. The criminal works with an appraiser who is also in on the deal they inflate the value of the home and obtain a reverse mortgage. After the reverse mortgage is closed on the criminal has the senior home owner to transfer the title to them. The senior is now out of home and any equity that was received from the loan.

Equity theft scams – This scam is one of the most complex. It is involves multiple scammers. Scammers buy a home then obtain an inflated appraisal usually obtained from an appraiser who is in on the scam and then they sell the home to a senior. Once the senior buys the home the scammers convince them to receive a reverse mortgage and then scammers use the senior for the equity.

Document fraud – With this scam the scam artist charges the senior outrageous fees to obtain reverse mortgage documents or for loan documents. Seniors interested in the reverse mortgage loan can find information on the One Reverse Mortgage site for free or on the Department of Housing and Urban Development (HUD) site.

Investment scams – At any given time in the United States there are thousands of investments scams happening to seniors. Investors will convince a senior to receive a reverse mortgage and then use the proceeds to invest in a company or other investments. The scammer then takes the money never to be heard from again.

Unethical lenders – a popular story line in the news with reverse mortgages is seniors being removed from their home after a spouse passes away…because the other spouse was not on the title the remaining spouse either has to pay the loan in full or move out. What these news stories forget to mention is the lender was not being ethical to the loan and letting the loan happen without both spouses being on the loan.

Steps to take to ensure you are not being scammed

Here are some steps you can take to ensure that you are not being scammed.

Go to counseling – When you go to a HUD-approved counselor you are ensuring you are getting proper information for an approved source.

Make sure you understand all the terms and conditions with the reverse mortgage loan – A reverse mortgage is an important financial decision. Be sure you understand all the terms of the loan. Many scammers will inform you that you do not have to pay for taxes and insurance. Paying taxes and insurances is part of your responsibilities with a reverse mortgage. Some scammers will go as far to say that taxes and insurances are payable to them. Your taxes and insurances will never be paid to the reverse mortgage company. These are things you continue to pay the same way you have before the reverse mortgage.

You have time to change your mind - Remember you have three business days after signing the loan document to cancel it for any reason. This is called the right of rescission. If the company you are working with does not give you the right of rescission, the company is likely scamming you.


2002-02-04 12:03:42 by losers

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