Filthy Reverse Mortgage Tactics Used to Steal Your Money
By Kevin P. Thompson
If there’s money to be had, there’s someone out there trying to get it. And mortgages are a common target for scams because of the amount of money involved, and the contract that they place upon the borrower. When you’re signing your reverse mortgage, be wary of firms that try tactics such as these to get your money.
* Filthy Tactic #1) Charging for Free Information
Charging you for information that you can acquire for free is a common tactic from predatory lenders. Persons and companies try to scam people seeking loans by offering information at a fee. You may feel that they are offering you a legitimate service, but the information they offer is available for free through the HUD. If they’re asking you to pay for any services, then leave before you sign anything. Any information they offer you can be accessed for free from your HUD.
* Filthy Tactic #2) Using Their Counselors Instead of HUD
HECM mortgages require you to meet with a counselor. But make sure you’re meeting with the HUD instead of a private counselor. Companies that offer counseling on mortgages often will try to pressure you into signing the reverse mortgage with their private lender, and do not have your best interests in mind. Research any company you intend to sign the mortgage with by getting information from your local HUD or the National Reverse Mortgage Lenders Association (NRMLA).
* Filthy Tactic #3) Getting More Than You Signed Up For
Beware of lenders who try to bundle other things with the Reverse Mortgage. Scam artists will try to convince you to sign your single-purpose reverse mortgage with a specific contractor. Often the contractor works with the lender to increase the required loan amount way beyond the actual cost to repair. If the lender suggests a contractor for you, be cautious. Ask a second contractor for an estimate before you sign with who the lender suggests to make sure you’re getting the best price on your mortgage.
Thank you for reading our latest article on the mortgage industry. If you would like to get more reverse mortgage scams, then drop by our website at http://www.dailywisdom4u.com and give us a buzz. Your feedback is always welcome.
Photo by Anne Oeldorf-Hirsch
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