Reverse Mortgage Fraud

Protecting our Seniors

For homeowners over the age of 62 who are living in Oklahoma, an Oklahoma reverse mortgage may be an ideal solution for obtaining funds they need and do not have. While reverse mortgages have many advantages, reverse mortgage fraud can have a devastating impact on your finances. The Oklahoma law firm of Hershewe examines some types of reverse mortgage fraud and how to protect you.

What Is A Reverse Mortgage?

A reverse mortgage, which is only available to individuals over the age of 62, allows the equity of a home to be released to the owner in one large lump sum or in smaller monthly payments. Repayment of these amounts is deferred until the owner dies or the house is sold. This equity can often be used as a means of income when you choose to retire. The percentage of your home’s equity that you can borrow increases with age; meaning the older you are the more you are entitled to borrow.

Reverse Mortgage Fraud

Before issuing a reverse mortgage, sound lenders attempt to take advantage of elderly clients by charging them a fee for information regarding a reverse loan. The information they provide can be obtained for free through HUD (The Department of Housing and Urban Development) and the charging of a percentage fee by a lender is considered an act of fraud.

Many individuals may use an online reverse mortgage calculator to help them determine the amount of the loan they can receive. It has been reported that some lenders are using inaccurate interest rates to inflate the estimate of the amount you can receive. If your home increases in equity during the time of your reverse mortgage, you should be aware that the increased value belongs to you or your heirs. Beware of any lender that offers you a larger loan in exchange for a percentage of the future value of your home.

Before obtaining a reverse mortgage in Oklahoma you should take precautions to help protect your home and your finances. If you have questions, speak with an attorney or consult The Reverse Mortgage Times for more information.

To speak with an Oklahoma mortgage attorney, contact The Hershewe Law Firm toll-free at 877-382-9734 or complete our contact form.