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Reverse mortgage scams

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opinion Wadena,Minnesota 56482 http://www.wadenapj.com/sites/all/themes/wadenapj_theme/images/social_default_image.png
Wadena PJ
(218) 631-1621 customer support
Reverse mortgage scams
Wadena Minnesota 314 S. Jefferson 56482

David A Anderson, Wadena County Veteran Serice Officer

The FBI and the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG) urge consumers, especially senior citizens, to be vigilant when seeking reverse mortgage products. Reverse mortgages, also known as home equity conversion mortgages (HECM), have increased more than 1,300 percent between 1999 and 2008, creating significant opportunities for fraud perpetrators. 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 or to use these seniors to unwittingly aid the fraudsters in stealing equity from a flipped property. In many of the reported scams, victim seniors are offered free homes, investment opportunities, and foreclosure or refinance assistance. They are also used as straw buyers in property flipping scams. Seniors are frequently targeted through local churches and investment seminars, as well as television, radio, billboard, and mailer advertisements.

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A legitimate HECM loan product is insured by the Federal Housing Authority. It enables eligible homeowners to access the equity in their homes by providing funds without incurring a monthly payment. Eligible borrowers must be 62 years or older who occupy their property as their primary residence and who own their property or have a small mortgage balance. Refer to the FBI/HUD Intelligence Bulletin http://www.fbi.gov/scams-safety/fraud/seniors/intelbulletin_reversemortages for specific details on HECMs as well as other foreclosure rescue and investment schemes.

Tips for Avoiding Reverse Mortgage Scams:

• Do not respond to unsolicited advertisements.

• Be suspicious of anyone claiming that you can own a home with no down payment.

• Do not sign anything that you do not fully understand.

• Do not accept payment from individuals for a home you did not purchase.

• Seek out your own reverse mortgage counselor.

If you are a victim of this type of fraud and want to file a complaint, please submit information through their electronic tip line https://tips.fbi.gov or through your local FBI office which can be located at http://www.fbi.gov/contact-us/field. You may also file a complaint by calling HUD's hotline at 1-800-347-3735 or online with HUD-OIG at www.hud.gov/complaints/fraud_waste.cfm.

As always please see your local County Veterans Service Officer if you have any questions. You can contact your local VSO at (218) 631-7617 or by email at david.anderson@co.wadena.mn.us and as always have a great week.

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