Lawyers and Settlements
Advertisement
Home Page >> News Articles >> Reverse Mortgage Lenders Allegedly Prey ..

Reverse Mortgage Lenders Allegedly Prey on Seniors

. By
Chicago, ILFor some seniors, the money offered through a reverse mortgage can be a lifesaver. People living on a fixed income might not have enough money to make ends meet in the case of illness or injury, so money obtained from a reverse mortgage lender can seem like the ideal solution. Unfortunately, some reverse mortgage lenders are accused of unethical tactics, including misleading seniors about the risks associated with a reverse mortgage so they experience a reverse mortgage default and their home is foreclosed.

Reverse mortgages are offered to senior citizens as a way to access money in the value of their homes. The terms of a reverse mortgage mean the senior does not have to pay back the loan until her or she either moves out or passes away, although the homeowner is still responsible for paying insurance and taxes.

Some seniors allege, however, that reverse mortgage lenders use aggressive and misleading tactics in marketing the program. For example, some lenders are accused of marketing the loans to seniors who cannot afford the fees associated with reverse mortgages. Other lenders are accused of marketing the loans as "free money" to be used to finance cruises and vacations.

In some cases, lenders are accused of putting the older spouse on the deed and pressuring the younger spouse to keep her name off the deed. When the person listed on the deed passes away, the remaining person is left to either pay off the reverse mortgage or face foreclosure. Some widows say they were never told they could face foreclosure if their husband died.

Meanwhile, some lenders are accused of telling seniors they will not lose their home, even if they default on the reverse mortgage. Furthermore, seniors may not realize that if they take out a lump-sum loan the interest charges are added monthly. By the end of the loan, the amount owed can be more than double the value of the original loan. Making the situation worse is that, according to a report by the Consumer Financial Protection Bureau (6/28/12), seniors are taking out reverse mortgages at a younger age, increasing the amount of time interest adds up on the loan.

Officials are now working on rules to ensure seniors are better informed about reverse mortgages before they take out a loan, but for some seniors, those regulations may come too late. Already seniors face foreclosure on their homes—homes that were already paid for.

"Reverse mortgages are inherently complicated products that are not easy for the average consumer to understand," the Consumer Financial Protection Bureau concluded in its report to Congress. "Consumers particularly struggle with the rising balance, falling equity nature of the loan. Recent innovation and policy changes have increased the complexity of the choices and tradeoffs consumers have to make when deciding to take out a reverse mortgage loan."

Reverse Mortgage Legal Help

If you or a loved one have suffered losses in this case, please click the link below and your complaint will be sent to a real estate lawyer who may evaluate your Reverse Mortgage claim at no cost or obligation.
Request Legal Help Now

READER COMMENTS

Posted by

on
Am in the process of ReverseMortgageFunding for income help, 68yo, in Va. RMF is in NY. Same laws apply for Hecm Loc? Home paid for, home appraised now @ $112,500 in April was 110,000. Do prices usually rise this rapidly? Would like you to look at amort sched i will get tomoro. Thanks.

Posted by

on
I need assistance also. Reverse Mortgage company put me in foreclosure because we didn't pay $7000 dollars owed for insuring this house. We are trying to repay the money by working on a repayment plan and they are not working with me.

Posted by

on
I have a long time neighbor who is in sincere question of what she can do with a reverse mortgage , she's being told she can stay in her home , of over 35 years , till she's told to leave .

Posted by

on
Champion Mortgage has been harassing my 87 yr, father since February 2014. I have printouts of his tax payment history from the City of Detroit. They have been leaving official letters in his door stating his house is up for foreclosure for delinquent property taxes because they are paying his taxes and so is he. They now say my father owes them 922.28. However, the City of Detroit's reps and statement says Champion Mortgage received two checks from the City of Detroit. I have spoken with several reps from this company and they put me on hold and keep telling me they are researching. They finally admit they received the two checks, but now he supposedly owes money from 2013 taxes. The City says they only made two payments, which those are the checks they recieved back. 87 with Congestive Heart Failure and has been in his home since 1952. Before I started investigating, I paid 150.00 on his so called repayment plan so they would leave him alone, until we could get to the bottom of this. They are scaring him to death. He now suffers anxiety attacks and his full awareness is focused on losing his home. This has got to be illegal. Is there any recourse for their actions?

Posted by

on
Realtor and his agent took my under age wife off deed with quit claim deed.They told us that we could get her back on deed by getting another quit claim after she reached 65 .They also told us this was possible as Florida was a community property state.

ADD YOUR COMMENT ON THIS STORY

Fields marked * are mandatory. Please read our comment guidelines before posting.

*Name:

Note: Your name will be published with your comment.

*Email Address:

Your email will only be used if a response is needed.

*Your Comment:

Are you the defendant or a subject matter expert on this topic with an opposing viewpoint? We'd love to hear your comments here as well, or if you'd like to contact us for an interview please submit your details here.


Click to learn more about LawyersandSettlements.com

Request Reverse Mortgage Legal Help

First name:

Last name:

Email address:

Phone number(s):

Zip/Postal Code:

Defendant:
Describe your complaint:

By submitting this form I agree to the Terms of Service.
There is no cost to submit this form.
I would like to be interviewed by a journalist.
Receive our weekly newsletter with the latest lawsuit news and legal information.

Check Claim Status Advertise with us Legal Funding


Legal Services:

Advertisement
 
FAQ | TOS | Privacy | Disclaimer | About Us | Contact Us | Press | Advertise | Member Login | Site Map | View Mobile Website

American Bar Association - Proud Member   Better Business Bureau   CAALA   Best of the Web Approved   Public Justice


This work is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License © 2001-2017 Online Legal Media. All rights reserved.


Visit other Online Legal Media Websites:

BigClassAction.comCALaborLawNews.com
OnlineLegalMarketing.comHealthEffectsOfAsbestos.com