Reverse Mortgage Scams

Reverse Mortgage Scams

(Alternate title: Dealing with My Stupid Criminal Loan Officer Peers)

I wish I could say that this was a "stupid criminal" situation like Jay Leno loves to see. It is not. If you would like to get really ticked off, read on. I received a call two days ago from a reverse mortgage client of mine. They closed about a year ago. Mr. Jones (as we will call him) called me to ask me this question:

"I recieved a call today from a loan officer. He said that the mortgage company that we closed our loan with went out of business, and that we need to sign new paperwork. He said he was going to send us a new mortgage package. He told us to just sign everything and send it back. Is this right and should we sign?"

Does it make you start to wonder how many seniors are scammed this way?

Just in case you are wondering, once a loan is closed, you can have 1,000 banks go out of business. YOU DON'T NEED to resign anything. This scenario above is a complete scam. And I hope it makes you as irrate as it makes me!

One would hope that after all the industry changes in the past year that the scum in this business would be gone. Nope. They just have invented new ways to crush someone to make a fast buck.

The great news is that Mr. Jones still had my number handy and called me first. That move just saved him $1,000's plus massive heartache. (the LAST thing a senior in his late 70's needs!!) I plan to have Mr. Jones tell the loan officer to send that new loan package out, so that I can then go personally pick it up, and forward the same scenario to any and every banking official I can get a hold of.

Steve Kappre is a mortgage loan officer in New Jersey. For more info or questions feel free to contact Steve.

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