BEWARE of Reverse Mortgage scams!!

Now scammers are even preying on seniors, a highly vulnerable population, using their interest in home equity conversion mortgages (HECMs), a loan product growing in popularity, as the hook. HECMs, also called reverse mortgages, are loans insured by the Federal Housing Authority (FHA) that allow seniors 62 and older to access the equity in their homes. Eligible borrowers must occupy their property as their primary residence, maintain the property, and pay property-related expenses like insurance and taxes on time. Because reverse mortgages have unique requirements, and are very different than traditional mortgages in that they provide money and do not require monthly mortgage payments, they can be difficult to understand, making it easier for the scam artist to confuse and take advantage of victims. Read more.

 

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