Avoid Reverse Mortgage Scams

If you’re a homeowner over age 62, you may be thinking about a reverse mortgage. This is a loan that allows older homeowners to use equity in their homes. 

As a result of the uncertainty in the economy since the pandemic hit in 2020, there have been scammers that target older homeowners through reverse mortgage schemes.

Unlike a traditional mortgage, a reverse mortgage does not have a monthly mortgage payment. The loan is usually repaid when the borrower sells or no longer lives in the home.

With a reverse mortgage scam, a homeowner may often not realize that they have been scammed until the loan money is already gone. 

Play it safe and talk to an expert before considering a reverse mortgage. You can speak to a HUD reverse mortgage counselor at anytime at 800-569-4287. To learn more about a reverse mortgage and how it works, visit www.consumerfinance.gov/reversemortgage.