Reverse Mortgage Scams to Watch Out For
Citizens Lending Group believes that all of our customers have the right to make the financial decision that is best for them. This is why we are committed to preventing reverse mortgage scams through proper education. The more you know about these loans, the better equipped you will be if you encounter situations that may be trying to take advantage of you or your loved ones.
This page is designed as a guide to avoiding reverse mortgage scams and lists several key warning signs to look out for. If you have specific questions about reverse mortgage requirements or would like to learn more, contact us in Florida, Pennsylvania, or California today.
Signs of Reverse Mortgage Scams in Action
- Leaving Off Your Spouse: One sure fire sign of reverse mortgage scams is if the lender is asking you to leave the younger borrower off the loan. A reverse mortgage loan works by only requiring payment when the last borrower passes away or moves out of the home. By only putting the oldest person on the loan, the lender may be trying to get loan repayment on terms that are better for them rather than for you. Always put both borrowers on the loan to avoid this.
- Taking a Loan Too Early: While the reverse mortgage eligibility starts at age 62, this may not be the best age for you. If you feel as those you are too young to be taking out a reverse mortgage loan and you are confident in your retirement plans, be on the lookout for one of these reverse mortgage scams. Untrustworthy lenders may push you to take out a loan at a younger age than is necessary for your financial needs.
- Misrepresenting Risk: A reverse mortgage is designed as a low risk way for you to spend the equity in your home. That said, there are still some risks associated with it. Any lender who tells you the loan bears no risk to you may be participating in reverse mortgage scams. Either they do not fully understand the product or they are lying to you in order to win your business. Either way, someone who is not being truthful with you is the first red flag.
- High Pressure Sales Tactics: Avoid reverse mortgage scams by avoiding high pressure salespeople. Remember, this loan is meant to help you get through retirement, it is not mean to enrich a banker. If you feel you are being pressured to accept a loan you do not fully understand, walk away.
Contact Us to Learn More About Avoiding Reverse Mortgage Scams in FL, PA, & CA
Reverse mortgage scams can be detrimental not only to your finances, but the finances of others as well. If you encounter a lender you believe is suspicious, contact the appropriate authorities in your state and then contact us to learn about what real reverse mortgage requirements look like, and how this type of loan may be able to help you.