We are inundated with the ads, some by well-respected stars such as Tom Selleck and Alex Trebek. Who are we to believe?
These elderly homeowners were convinced to borrow money through the program while the risks and requirements were glossed over. When they missed a paperwork deadline or fell behind on taxes or insurance, lenders moved swiftly to foreclose on the home, which wiped out hard-earned generational wealth.
Especially hard hit were lower-income, black neighborhoods, which were targeted by the unscrupulous lenders. Siome 100,000 loans have failed.
USA Today, in a first-of-its-kind analysis of more than 1.3 million loan records, discovered that reverse mortgages end in foreclosure six times more often in predominantly black neighborhoods than in those that are 80 percent white.
And here’s the kicker:
It is not only those scammed who are hurting, as the public also pays a steep price. Reverse mortgages are insured by a Federal Housing Administration fund, which is in the red more than $13.6 billion because of an increase in claims paid out to reverse mortgage lenders since the recession.
More @ Elderly Suffer From Reverse Mortgage Scams
