Reverse mortgages are gaining in popularity as more senior’s begin looking for methods to supplement their retirement incomes. And as the interest in inverted mortgages increase, so are the instances of reverse mortgage fraud and scams. Many seniors are finding that they have lost hundreds bucks of their hard earned equity to these inverted mortgages scams. Since reverse mortgages typically involve our largest asset (your house), this type of fraud can possess a significant negative impact on your retirement. The following inverted mortgage fraud information will help you avoid becoming a victim of a inverted mortgage scam.
Reverse Mortgage Scams
The are several types of inverted home loan scams that may end up costing you hundreds and even tens of thousands of dollars in equity in your house if you turn out to be a victim.
Charging for free info on reverse mortgages
A number of estate planning businesses have been charging thousands of bucks for info provided free from HUD. Typically these companies charge for this info as part of an estate preparing program.
Pushing reverse mortgages as a way to pay for purchases
Some companies that sell large ticket items or services, like annuities or insurance items, might try to suggest utilizing a reverse home loan like a way to fund these purchases. When the additional cost from the reverse mortgage is factored into the buy, it ends up costing the homeowner much more than the benefit provided by the item or service.
Unethical reverse mortgage terms
Some lenders slip in excessive fees and conditions into their contracts. These conditions can possess a serious effect a Seniors’ equity. In some instances, lenders have used shared equity or shared appreciation conditions, which gives the lender the right to collect a portion of the appreciation when the house is sold or refinanced.
Protecting yourself from invert home loan scams
If you’re looking into reverse mortgages, there are several things which you can do to protect yourself from falling victim to these kinds of scams.
1. Speak with a HUD approved reverse mortgage counselor. The counselor will assist you to comprehend reverse mortgages and help you evaluate your situation.
2. Obtain a number of offers from various reverse home loan lenders so that you can compare different choices. The rule of thumb would be to get at least three separate provides so that you’ve a great comparison from the conditions offered.
3. Make certain you understand all the terms and conditions within the invert home loan contracts. Your reverse home loan counselor can guide you through the contracts.
4. You generally have 3 company days after signing the loan document to cancel it for any reason.
In case you suspect that a organization is operating in violation of the law, let your reverse home loan counselor know and then file a complaint with your State Attorney General’s office or banking regulatory agency and also the Federal Trade Commission (FTC) at www.ftc.gov.
If you are looking for more information on Reverse Mortgage Calculator, then I suggest you make your prior research so you will not end up being misinformed, or much worse, scammed. If you want to know more about Reverse Mortgages Pros and Cons, go here: Reverse Mortgages Pros and Cons
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