Mortgage Loan Fraud
Mortgage loan fraud – convincing the elder to take out a home loan with overly high fees / interest / penalties, or unaffordable payments. This may involve reverse mortgage fraud. A reverse mortgage is a type of loan for homeowners 62 years of age or older who have considerable equity in their houses. Typically, borrowers receive periodic payments, e.g., monthly, and/or have access to a line of credit and make no more mortgage payments during their lifetimes. The loan is paid off when the loan holder enters a long term care facility or dies and the house is sold. Reverse mortgages may not be suitable for many people and can include hidden traps and dangers.
The Most Common Ways to Commit Mortgage Loan Fraud Include:
- False Statements – putting false or misleading statements in the documents.
- Non-disclosure – failure to inform the lender about important information such as having a second lender.
- Identity Theft – putting another person’s name on the documents.
- Occupancy Fraud – putting false information about residency
- Income Fraud – overstating income.
Tips for avoiding reverse mortgage scams:
- Do not respond to unsolicited advertisements.
- Be suspicious of anyone claiming that you can own a home with no down payment.
- Do not sign anything that you do not fully understand.
- Do not accept payment from individuals for a home you did not purchase.
- Seek out your own reverse mortgage counselor.
At Elder Protection Center we’re here to take immediate action to protect victims of financial elder abuse. If you suspect someone you love is a victim of mortgage loan fraud or if you have questions regarding their mistreatment – Call Us Now.
At Elder Protection Center, Protecting the People You Love is our number one priority. We’d love to hear from you. Elder Protection Center is standing by for you and your loved ones – Today.