Don’t fall for it; scamming the elderly the goal of real estate fraudsters

___

Published Date 7/23/2021

Elder fraud has always been out there. Technology, however, seems to be exploding the volume of it, with cyber-criminals getting more crafty and uncaring than ever.

FBI Portland’s Beth Anne Steele reports that seniors, who tend to be financially stable, also tend to be more trusting than younger demographics. ‘We find this particularly true when it comes to real estate fraud schemes,” says Steele. ‘Reverse mortgage frauds, also known as home equity conversion mortgages, are one of the most popular real estate scams we see.”

She goes on to explain how a legitimate home equity conversion mortgage allows eligible homeowners to access the equity in their homes by providing funds without the homeowner having to make a monthly payment. “When a fraudster finds a senior who is not familiar with the requirements or the process, the results can be devastating. In some cases, the fraudster will pressure the senior into taking inappropriate reverse mortgages. They may also pressure the victim to use some of that money to buy an expensive annuity... an annuity that may not even mature for many years.”

Seniors are also being used as straw buyers. Here’s the scenario, as described by Steele: The criminal says he wants to buy a house, but—for whatever reason—says he can’t get approved for the purchase. The senior agrees to sign the papers for him as a favor, or maybe the fraudster offers him a few thousand dollars bonus. The criminal could be a real estate agent, lender, appraiser, investor, or new friend. In the end, the bad guy often ends up skimming the equity and leaving the victim holding a hefty 30-year mortgage with potential criminal liability. In other related real estate scams, the criminals may offer the victims free homes, investment opportunities, or foreclosure and refinance assistance. The result is often the same—you lose that cherished nest egg and your credit history is in ruins.

There are ways to protect yourself and your family members from these fraudulent schemes. First, don’t respond to unsolicited ads. Secondly, be suspicious of anyone saying you can own a home with no down payment or flip a house by signing for a mortgage you don’t want. Of course, NEVER sign anything that you do not fully understand, and don’t accept payment for helping someone else to buy a house that you do not intend to live in.

Seniors are urged to pursue a reverse mortgage lender if it’s what they want to do with their property by seeking out one who is approved by the U.S. Department of Housing and Urban Development. And if you have been victimized by an online scam, report any suspicious contacts to the FBI at the FBI’s Internet Crime Complaint Center at www.ic3.gov.

FBI.gov, TBWS

All information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.

“Equal Housing Lender. NEXA Mortgage, LLC NMLS 1660690. I am a licensed mortgage originator, NMLS # 630337, and licensed to originate mortgage loans in the state of Arizona, Arkansas, California, Florida, Georgia, Illinois, Missouri, Nevada, Tennessee, and Texas. To learn more, visit my NEXA Mortgage website at http://lillianwong.net."