Be careful: Reverse mortgage fraud is on the rise
Today’s rising costs, coupled with increasing foreclosure and unemployment rates, have resulted in more and more Hoosiers living paycheck to paycheck. In addition, uncertainty in the stock market may have some looking elsewhere for investment opportunities. With these combined factors, unfortunately, the current economy is a breeding ground for scammers looking to capitalize on vulnerable consumers already feeling financially insecure.
One area of concern in Indiana and nationwide is reverse mortgage fraud. A reverse mortgage is a loan allowing people who have a great deal of equity in their home to convert that equity into funds. These funds can be paid to the homeowner in a lump-sum payment, a monthly income payment or an available line of credit.
Although reverse mortgages are a legitimate lending option for homeowners that meet a very specific set of criteria, more and more unscrupulous mortgage brokers are using the little-understood finance option to defraud their trusting customers.
Post from: Reverse Mortgage Loan Blog
