Reverse Mortgage Fraud in Missouri
Predatory lending comes in many disguises. Reverse mortgage fraud is one of them and often victimizes senior citizens who are unaware of their mortgage options. Basically, a reverse mortgage allows older homeowners (62+) to transfer part of the equity in their homes into tax-free income without having to sell the home, give up title, or take on a new monthly mortgage payment. The reverse mortgage is well named because the method of payment is reversed. Instead of making monthly payments to a lender, as with a regular mortgage, a lender makes payments to you.
If you’re considering a reverse mortgage, attorneys at The Hershewe Law Firm, P.C. will explain your financial alternatives and examine your loan documents for accuracy and good faith.
Avoid reverse mortgage fraud in Missouri by watching out for these possible red flags:
- Advisors who downplay mandatory counseling. It’s required if you apply for an FHA-insured reverse mortgage. The Department of Housing and Urban Development (HUD) will supply you with a free list of third-party counseling agencies. Visit www.hud.gov.
- Advisors who charge you for a reverse mortgage lead. Never pay for this information. You can get free lender referrals from HUD.
- Advisors who fail to give you a Good Faith Estimate of all the fees required in the transaction of a reverse mortgage.
- Advisors who ask you to sign paperwork that is not completely filled out.
- Advisors who recommend how you should use the money generated from your reverse mortgage.They may suggest contractors for needed repairs or the purchase of annuities or other financial products.
Educate yourself before taking any major financial step, especially one involving a home mortgage, and always remember to protect yourself from fraudulent advisors. Contact The Hershewe Law Firm, P.C. for a free consultation.
