Tips to Avoid Reverse Mortgage Scams
You have probably seen the ads on late night television where a former senator or an older television star informs the viewer how easy it is to obtain a Reverse Mortgage. The pitch goes something like "You can obtain some needed cash and you still own your home!" Unfortunately, such offers can easily be converted into fraud schemes that target senior citizens and the substantial equity in their homes.
If you are considering a reverse mortgage be careful. Reverse mortgages, also known as Home Equity Conversion Mortgages (HCEM) have increased more than 1300% from 1999 to 2008, creating significant opportunities for fraudsters.
Reverse Mortgage Scams are devised and developed by unscrupulous individuals in real estate and financial services. Seniors are offered free homes, investment property, and foreclosure or refinance assistance, and are sometimes used as "straw buyers" in property flipping scams.
Some scammers target senior members of local churches, send invitations to "investment seminars," and use television and radio media to attract unsuspecting victims. Once a senior's name and other personal information are... Read More
|Fraud Target - Senior Citizens |
Over the past few months we have described fraud schemes that target senior citizens and given tips on how you can protect yourself and seniors in your family from such schemes. Now it is appropriate to review what we have learned:
- Senior citizens are highly likely to have saved money over the years, and many keep a significant amount of cash hidden in their home for easy access. Fraudsters often target these savings.
- Today's seniors endured the depression, fought or feared World War II and the Korean War, and in spite of it all developed conventions of being polite and welcoming. Consequently, it can be extremely difficult for seniors to give scammers a resounding "no" answer or simply hang up on unwanted solicitors.
- Most victims of fraud scams are unlikely to report being a victim of fraud, and seniors are even less likely to report this crime for a number of reasons. The primary reason being that... Read More