WARNING: Reverse Mortgage Fraud

Here is another scam that our Senior Citizens are faced with. It’s called the reverse mortgage fraud.

The FBI reports that reverse mortgage scams are engineered by unscrupulous professionals in a multitude of real estate, financial services and related companies to steal the equity from the property of unsuspecting senior citizens.

The scam can take on several different forms, from investment opportunities, to free home offers and foreclosure or refinance assistance. They can also suck you into property flipping scams.

Seniors are often targeted through local churches, investment seminars, as well as television, radio and mailer advertisements.

Remember that a legitimate reverse mortgage is insured by the FHA, or Federal Housing Authority. You must be 62 years or older and occupy your property as your primary residence and own it or have a small mortgage.

You can protect yourself by

1) Not responding to unsolicited advertisements.

2) Not accepting payments for a home you did not purchase.

3) Never signing anything you don’t fully understand.

4) And by asking questions or seeking advice from people you trust.

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