Aug 7, 2009

Beware the Reverse Mortgage Scams

A reverse mortgage allows you to tap the equity in your home without having to sell or take out another type of loan. It allows many seniors to pay their bills and stay in there homes, especially in the current economic downturn.

However, the FBI is warning senior citizens to protect themselves with reverse mortgage deals on the sharp increase and the number of scams increasing along with them. Since 1999, reverse mortgages have increased by 1,300%, the FBI said. Reverse mortgages, also called Home Equity Conversion Mortgages, are intended to allow homeowners over the age of 62 to get equity from their homes without having to make monthly payments.

But scam artists have come up with a series of ploys to drain the equity and take the money. Scammers use churches, seminars and a variety of forms of advertising to target seniors. AARP offers a lot of helpful information about reverse mortgages.

So, keep your eyes open and your ears down on the tracks and protect those seniors that you love and help protect.

4 comments:

  1. It always infuriates me to hear of people scamming the elderly. Bastards.

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  2. Thanks for this one Bucko, I have an older sister who'd get alot from this post - I'd like her to read it if okay? Great info.

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  3. I echo Beth, scamming the elderly is lower than the lowest bottom feeder.

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