Reverse Mortgage Scams

Reverse Mortgage Counseling Scam

Another wonderful protection feature for the FHA Reverse Mortgage also known as a HECM (Home Equity Conversion Mortgage) is the requirement for the borrower(s) to speak with our meet in person with a HUD approved Reverse Mortgage Counselor. This helps the borrowers understand exactly how a reverse mortgage works. What we have heard, and HUD is working to stop, is counselors that are partners with other reverse mortgage lenders or financial service individuals and will try to push you into their products or services. If this happens to you, report it to HUD immediately, also inform the company/lender you are working with to also report it. If the counselor is taking the time to try and send you to one of their partners/associates for most likely some type of compensation, they will not have your best interests.

FHA funds housing counseling agencies throughout the country who can give you advice on reverse mortgages. To find a counselor near you, visit the FHA Housing Counseling Agency Listings, or call: (800) 569-4287. You can also contact the HECM counselors from FHA's National HECM Counseling Network. They can provide face-to-face and telephone counseling nationwide.

Types of Reverse Mortgage Scams

Being Charged for Reverse Mortgage Information - Do not pay for any type of Reverse Mortgage Information, brochures, or calculations of what you can qualify for. Read more...

Reverse Mortgage Foreclosure Flipping - A more elaborate scam where seniors are purchasing foreclosures or distressed properties with a Reverse Mortgage. Read more...

Reverse Mortgage Repair Scams - Repairs may be required to complete a reverse mortgage, however be wary of who you choose to do the work. Read more...