Avoiding Reverse Mortgage Pitfalls
Reverse mortgages are becoming popular in America. Reverse mortgages are a special type of home loan that lets a homeowner convert the equity in his/her home into cash. They can give older Americans greater financial security to supplement social security, meet unexpected medical expenses, make home improvements, and more. However seniors need to be aware that there are lenders in the market that are well…let’s say less than honest.
If you are interested in a reverse mortgage, beware of scam artists that charge thousands of dollars for information that you can get for free. While I advise caution you don’t have to be afraid. Of the 4 million general complaints to the FTC between 2005 and 2008 only 50 have to do with reverse mortgages. You can find all the information you need to know about reverse mortgages free on HUD’s website and on my Wells Fargo Reverse Mortgage page.
How to report reverse mortgage fraud
To report fraud or abuse in the reverse mortgage program contact your local homeownership center.
Free Reverse Mortgage Information
Things to beware of with reverse mortgage lenders
- Beware of copy cat names, misleading symbols and claims about no payments when there could be taxes and insurance payments.
- Be aware that if your loan comes due, there is a payment required.
- The FTC warns borrowers to avoid shady marketing techniques with phrases like “government benefits” and “guaranteed to qualify”.
- Every senior homeowner 62 years or older does not qualify for a reverse mortgage. In fact over the past two years due to declining home values many seniors who start the reverse mortgage process find that they no longer have enough equity in their home to qualify.
Considering a reverse equity loan call today for a free quote 1-877-311-7383.
