California Lawyers: Reverse Mortgage Fraud
For elderly people, reverse mortgages can be a way to use the equity they have built up in their homes without having to sell their homes. Some lenders, however, take advantage of the situation and fail to disclose all the costs and contingent interest charges based on appreciation rates. If that has happened to you or an elderly relative, call a real estate lawyer at Michael P. Ring & Associates in Santa Barbara, California.
Contact us about reverse mortgage scams.
805-564-2333 or 800-941-7464 (941-RING).
Full disclosure is essential in any real estate transaction. When lack of disclosure causes financial harm to elderly people, it is especially egregious. Our attorneys can help.
An honest reverse mortgage can provide needed income.
Senior citizens are often living on fixed incomes. As expenses rise, they may look for ways to use the equity in the homes they have bought and paid for over many years. A reverse mortgage pays the homeowner each month in exchange for equity in the home. The details of the mortgage can be difficult to decipher in a complex contract, however. It pays to have a real estate lawyer review the reverse mortgage agreement.
Some lenders tell different stories to different people.
When our law firm investigates reverse mortgage scams, we usually find that the lender tells a different story to the borrower than to their investors. The borrower is told that a small amount (perhaps two percent) of appreciated equity will accrue to the lender each month. But the lenders tell their investors that they will reap 50 percent of appreciated equity.