Tips About Reverse Mortgages In Fort Worth Texas
Increasingly, strapped Senior homeowners are opting to get a "reverse mortgage," financing against a house's value that is repaid when the borrower dies or sells the home. The amount of federally insured reverse mortgages issued to seniors in the past three years alone - nearly 335,000- is more than the total from 1990 through 2006. Consumer advocates have long cautioned that reverse mortgages should be used as a last resort for their high fees. Now, those warnings are growing louder as a result of spate of fraud.Â I personally think they are a poor choice for most people.
The nation's Consumer Law Center says seniors are facing the same type of aggressive tactics that were common during the subprime lending boom. And based on a current report in the FBI and the U.S. Department of Housing and Urban Development (HUD), a host of "unscrupulous loan officers, mortgage companies, and loan counselors" are defrauding desperate Americans. In a single scheme, people living on the street are told that the reverse mortgage can save their homes, then "rejected" for the mortgage and steered into a deal that transfers title of their property to "investors." The outcome: They lose their homes anyway.
Other scam artists sell loans that appear to be HUD-insured reverse mortgages but aren't, based on the AARP, the nonprofit advocacy group for Americans 50 and also over. Still others, billing themselves as "investment advisers," persuade consumers to invest the proceeds of reverse mortgages in other financial products which come saddled with extra costs. And in some instances, the FBI report says, the proceeds of investment schemes aren't invested- they're simply stolen.
Homeowners should turn down any pitch that utilizes reverse-mortgage funds to buy financial products. Actually, they ought to think twice before becoming a member of this type of loan whatsoever. Other options - like taking a home-equity line of credit as well as moving to a smaller place- may be able to meet your needs at a lower cost, according to the AARP.
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