Reverse Mortgage Scams

Reverse Mortgage Repairs Scams

Due to a strict FHA appraisal, a Reverse Mortgage may require repairs made to the property before you can close on your reverse mortgage. Make sure you find exactly what needs to be repaired by the appraiser. Here is what you need to watch out for. Some companies will also offer home improvements or repairs through a recommended contractor. Most likely, the contractor is aware of the scam and charging exorbitant prices for his or her services.

Here is our tip: Get multiple quotes for the work, and tell each contractor your are getting multiple bids. Secondly, mainy reputable contractors will agree to paid at closing. Ask your lender or loan officer how to set it up properly. Beware if the contractor is demanding a large upfront payment. Disclose to them that you are getting a reverse mortgage and would like to pay at closing or after closing and the work needs to be up to HUD guidelines.

Other 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...

Shady Reverse Mortgage Counseling - Beware of Reverse Mortgage Counselors with a hidden agenda. Read more...

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