Dean Graziosi Loan Mod Scam

Reverse mortgage fraud Hello and welcome. I'm Charlie Fuller, a real estate coach and investor with Dean Graziosi's Real Estate Success Academy. In this podcast, we talk about reverse mortgage fraud. Florida Attorney General Bill McCollum is warning seniors about reverse mortgage fraud, a type of home loan often exploited by scammers and fraudsters. These loans are often a popular choice for seniors because they provide a source of cash to cover unexpected medical expenses or supplement Social Security. aEoe If seniors are worried about their finances and looking for legitimate options for financial relief, they don't need to worry about predatory lenders and brokers looking to take advantage of their precarious situation. No, and aE¿ 1/2 Attorney General McCallum said. Consumers should take all precautions to avoid fraud and situations that further worsen their financial situation. A reverse mortgage is a special type of home loan that allows homeowners over the age of 62 to borrow against the equity in their home without having to repay it until the home is sold, the borrower dies, or the home vacates completely. can do. When the home sells, the lender returns the principal and interest. The remaining value of the home is paid to the homeowner or his or her survivors. Unfortunately, as reverse mortgages grow in popularity, so does the potential for fraud. Predatory lenders, unscrupulous loan brokers, and dishonest brokers may target seniors who are concerned about their financial security. Allegations of fraud and high-pressure sales tactics are becoming increasingly common as seniors are taken advantage of under the guise of beneficial and legitimate reverse mortgages.

Borrowers also risk being misled into inappropriate loans or pension payments by salespeople or insurance brokers who work with them without disclosing their relationship with the borrower. McCallum pointed out that reverse mortgages can serve a purpose if funded through a legitimate lender. According to the U.S. Department of Housing and Urban Development, known as HUD, homeowners with reverse mortgages can receive payments in a lump sum or monthly payments, or in some cases, as a type of line of credit. Homeowners whose circumstances have changed can restructure their payment options. Today, HUD-approved housing counseling agencies provide information, advice, and free referrals to the list of HUD-approved lenders at no or minimal cost. HUD does not recommend the use of estate planning services or services that charge a fee solely for connecting borrowers and lenders. This information can now be obtained by calling HUD at 1-800-569-4287. This is 1-800-569-4287. More information is also available on his HUD Reverse Mortgage website. I'll give it to you again.

Now, no matter how you look at it, the number of reverse mortgages is set to explode. Baby boomers are reaching retirement age, and real estate investments make up a large portion of the nest egg for most. Reverse mortgages will provide a way for many of these retirees to use their nest egg to support their retirement needs. However, as mortgages increase, so do the opportunities for fraud. Reverse mortgages differ from traditional mortgages in that they are an attractive vehicle for fraudsters. For example, reverse mortgages are a product designed specifically to target seniors, the group most vulnerable to fraud. Additionally, scammers know that reverse mortgages allow older homeowners to access large sums of cash with relative ease. Reverse mortgages are also more difficult to understand than traditional mortgages, making it easier for scammers to confuse and exploit victims. Next, let's take a look at some of the tactics scammers use and the precautions reverse mortgage borrowers can take to protect themselves.

Disregard advice before renting. Now, educated borrowers are a scammer's biggest enemy. However, it is the borrower's responsibility to learn about reverse mortgages and take advantage of counseling and other opportunities. His three major reverse mortgage programs, HUD, HECM, and Fannie Mae's Homekeeper and Financial Freedom programs, all require potential borrowers to consult an independent advisor who specializes in reverse mortgages before making a loan. It is mandatory to seek advice. In a recent fraud case in the Detroit area, unscrupulous lenders kept the amount owed to borrowers a secret. She thought the loan would be $61,000, but she actually owed $103,000. Guess who pocketed her $42,000? A detailed consultation would have given the homeowner an accurate idea of how much she was actually entitled to. Ultimately, and unfortunately, the prosecutor in this case stated: aEoe That never had to happen. aEâ¿ Mr. James reportedly told Mr. Schultz that he could skip the consultation by simply asking him a few questions over the phone. So there are preventive measures. Although telephone consultations are available, it is best to meet with a counselor in person. Be very suspicious if you notice that anyone you work with in this process suggests that counseling can be done over the phone or downplays the importance of pre-loan counseling. Forgery Forgery is an integral part of many frauds. In the aforementioned Detroit case, the lender requires the title company to issue her two checks payable to the homeowner. One was her $61,000 that the homeowner received, and the other was her $42,000 that the unscrupulous lender endorsed with a forged signature and transferred to his own account. In one case in California, two scammers (one working with a financial advisor and the other with a handyman) persuaded an elderly homeowner to use reverse payments to pay for home repairs. I advised him to take out a mortgage.

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