Lofty promises and advertising gimmicks are tell-tale signs of a reverse mortgage scam, The Motley Fool says in a recent article, citing the FBI.
Examples of lofty promises include free homes, investments and more. When it comes to advertising, media ads, seminars and others also point to a scam.
“Becoming a victim of a reverse mortgage scam can have lasting effects on your life,” writes Michael Lazar. “For starters, you can be swindled out of the equity you worked so hard to accumulate. You can also be left with a destroyed credit rating and even lose your home.”
Red flags include not being allowed to choose the reverse mortgage counselor; the lender making appointments for the consumer; the lender trying to get money right away; and “sketchy” loan insurance, Lazar says.
“Most lenders are legitimate,” he says. “Make sure that yours is, too, and you can proceed with your reverse mortgage in confidence.”
Read The Motley Fool article here.
Written by Cassandra Dowell