Reverse Mortgage Scams and Schemes

Posted by charles dennis

June 29, 2007

Good people, my great grandmother once told me that not everything that glitters is gold. It is so important to take your time when considering long term financial decisions that can affect you long term. In other words, if it sounds to good to be true, it probably is. The Houston Chronicle recently followed a few seniors that have fallen prey to schemes invloving their homes, please read and make sure it does not happen to you.

Shortly after Anita Spivey filed for bankruptcy, letters poured in from companies promising to help her avoid foreclosure.

One solicitor enrolled her in a reverse mortgage, which allowed the 63-year-old to live in the house free. Her family won’t inherit the home unless they pay off a $35,000 mortgage balance after she dies.

“I know what I’m getting into,” she said.

Other seniors, however, don’t understand the implications of reverse mortgages, consumer advocates say. And in some cases, scam artists use the loans and other tactics to dupe seniors with bad credit out of their homes. Full Story