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How to Avoid Reverse Mortgage Fraud

By Edited Nov 13, 2013 0 1

The most crucial fact of a reverse mortgage is that it facilitates older citizens who are the most vulnerable to reverse mortgage fraud.

The comparative complexity of the reverse mortgage also makes it easier for the scammers to fraud innocent people out of their hard earned money.

You must have done your homework before getting your loan to avoid reverse mortgage fraud as the awareness and knowledge of reverse mortgage loans will give you the defense against these fraudsters.

Proper counseling is the first key point to stay away from such scammers. It is very important to go this route, as the counselor (non-profit) should be working for your benefit to help you understand the complexities of these loans.

Do not agree on counseling on telephone, it is always suggested to meet the counselor face to face. Any type of fraud, especially reverse mortgage fraud can happen over the phone much easier.

Falsification is another step towards reverse mortgage fraud as the lender deals with the company so he may use the borrower name to get hands to your loan like by offering two checks from the loan company or using your signature in wrong way.

The finest and easiest way to steer clear of such situations is to not sign any blank letter or check or any paper.

When you want any loan, it is always better to first shop around and then choose the best one that will meet your needs.

The reverse mortgage loan that you choose should have reasonable closing costs and terms that you have agreed to.

Do not ever rely on the home services as these individuals try to you show you a lot of sympathy because of your age. Reverse mortgage fraud can be easily perpetrated iin these situations.

If any counselor is getting stubborn by pushing you toward any particular lender, stay very cautious and suspicious. This can be another indicator to you of potential reverse mortgage loan fraud.

There exists some companies which come to offer you the free of cost services in order to find any proper lender for you. In response they demand some specific percentage of your loan. Always avoid such situations as these are illegal and can just be another form of reverse mortgage fraud.

If you are facing any such situation, do not worry. Just take advice from a trusted friend or simply delay financial purchases.

To avoid all such scammers, HUD has opened a new service to offer contact numbers of non-profit trust worthy counselors who will give you contacts of three participating lenders.

Legislation has been signed by government to increase fortification for consumers in the lending market and provide law enforcement with more tools to crack down on deceitful mortgage practices.

Many seniors are looking toward a reverse mortgage to solve debt problems, and just pay monthly bills. Social security does not pay the bills, and many have lost their retirement savings because of the poor economy.

It is a shame that reverse mortgage fraud is so common nowadays, but as educated consumers we can all protect ourselves from these horrible predators.



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