by Laurie Willis
When given the opportunity, criminals will target those they perceive as the easiest mark and the weakest among us. As we cope with the bursting of the real estate and economic bubbles, that is even more apparent as we see more and more instances of fraud against senior citizens. Oregon Reverse Mortgage Info is determined to highlight and expose some of the schemes being perpetuated against Oregon’s elder citizens.
The Salt Lake City office of the Federal Bureau of Investigation and the Utah Division of Real Estate have compiled a list of the potential top five mortgage related rip-offs in 2010. Chief among them: a reverse mortgage scam targeting the elderly.
Scam artists are always looking for new ways to reinvent the same crime,” said Michelle Pickens, special agent and mortgage fraud coordinator with the FBI. “The reverse mortgage scam is based off the ’straw buyer’ model where they use senior citizens … against their own mortgages.”
Unscrupulous loan officers, mortgage companies, investors, loan counselors, appraisers, builders, developers and real estate agents are exploiting Home Equity Conversion Mortgages (HECM)-also known as reverse mortgages-to defraud senior citizens. They recruit seniors through local churches, investment seminars, television, radio, billboard and mailer advertisements, to commit the fraud primarily through equity theft, foreclosure rescue, and investments schemes.
Equity theft schemes are the most common method used by mortgage fraud perpetrators to exploit Reverse Mortgages (HECMs). Con artists, often with the aid of straw buyers (someone who is purchasing a property but not intending to live there or be responsible for the mortgage), execute a scheme designed to withdraw false equity from properties. They typically identify foreclosed, distressed, or abandoned properties (or buyers) using information contained within county deed records. Perpetrators purchase the properties using straw buyers who commit occupancy fraud by fraudulently stating they will be using them as their primary residence.
They recruit seniors to “purchase” the properties from the straw buyers. This is generally accomplished by the perpetrator transferring the deed to the property to the senior with no exchange of money. After the senior is living in the home for at least 60 days, the scam artist arrange for the senior to obtain a reverse mortgage with the aid of a fraudulently inflated appraisal, and encourage the senior to request a lump sum disbursement of the equity at closing. They facilitate mortgage fraud by arranging for minor cosmetic repairs, or falsely documenting repairs that were never performed to inflate the appraisal. They also fraudulently create fictitious loans and liens than enable them to distribute the loan proceeds to themselves, the straw buyer, and others at closing.
As more members of the ‘baby boomer’ generation turn 65, their vast and expanding real estate holdings make reverse mortgage fraud an increasingly attractive scam for perpetrators. Don’t be taken in by scam artists. If it appears shady, check with the Oregon Attorney General or with the Oregon Division of Finance and Corporate Securities.
As a Reverse Mortgage Specialist, I have been offering Oregon Reverse Mortgages for over 6 years. With over 25 years of service to clients, I have always felt that helping our seniors is helping the back bone of this country. To find out if you qualify for a Oregon Reverse Mortgage, call me or fill out the questionnaire online and I will get back to you promptly.
Contact Us
If you have questions about an Oregon Reverse Mortgage, please contact one of us today at 541-342-7576. Alpine Mortgage Planning is located at 1200 Executive Pkwy., Ste. 100, Eugene OR 97401. You can also e-mail Laurie here or Fred here. We are here to help you make the decision that is right for you. Reverse Mortgages are not for everyone, but they are an excellent choice for some people. Isn’t it time that you checked out the advantages of a Reverse Mortgage?