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Are there reverse mortgage scams?
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.
Is Tom Selleck reverse mortgage legit?
TOM SELLECK is always reassuring grandma and grandpa that a reverse mortgage is NOT a scam to take their home. But in a NEW video (that is fake btw), he’s finally admitting that that’s EXACTLY what it is. Okay, he didn’t REALLY admit it.
What does Tom Selleck know about reverse mortgages?
Selleck Says: A Reverse Mortgage Turns Your Home Equity into Cash That You Pay Off When You Leave the House. Your loan amount must first be used to pay off any balance of your traditional mortgage — if you have one. Remaining money can be accessed in cash, as a line of credit or as lifetime monthly payments.
Who advertises for reverse mortgage?
AAG Reverse Mortgage Loans TV Commercial, ‘Gotta Say Something’ Featuring Tom Selleck – iSpot.tv.
Can you lose your house if you have a reverse mortgage?
The answer is yes, you can lose your home with a reverse mortgage. However, there are only specific situations where this may occur: You no longer live in your home as your primary residence. You move or sell your home.
Can you walk away from a reverse mortgage?
If your outstanding loan balance exceeds the current property value and you can no longer stay in your home. You can either do a deed in lieu of foreclosure or simply walk away. Reverse mortgage loans are non-recourse and its debt cannot be transferred to your estate or heirs.
Can a person you know commit reverse mortgage fraud?
Reverse Mortgage Fraud is Often Committed by Someone You Know! According to this article by the Wall Street Journal, the victims of reverse mortgage scams often know the perpetrator. The perpetrator could be a financial advisor or even a family member.
How does reverse mortgage fraud affect senior citizens?
Sometimes reverse mortgage fraud involves more subtle deception – the lender or other advisor is not necessarily lying to the senior citizen who’s considering a reverse mortgage but pushes the loan knowing that it’s either not the best option or is an unsuitable product.
What happens when you invest in a reverse mortgage?
Some scams are specifically geared to getting the target to “invest” in an annuity or real estate fund affiliated with reverse mortgages. The victims will lose the money they invested when the con artist, usually someone associated with a fraudulent reverse mortgage lender, walks away with the funds.
When did reverse mortgages start to increase in popularity?
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.