|
This relatively uncommon loan actually
involves getting money back from your loan
provider to use however you choose.
Reverse
mortgages are expected to boom over the next
five years, particularly among senior
citizens--over a million could apply,
according to Fannie Mae, the big secondary
mortgage company. But Fannie Mae warns
consumers to watch out for the tell tale
signs of fraud.
First, know
how to recognize pressure sales tactics--
don't let anyone fast-talk you into a
reverse mortgage, not even friends or
relatives. Second, make sure that payments
are made out directly to you--don't sign the
money over to anyone else. Third, remember
that it's totally up to you how you spend
the money--just because you heard about a
reverse mortgage program from a remodeling
company or an investment firm, doesn't mean
you have to purchase their services.
Fannie Mae's
free brochure on Reverse Mortgages is
available by calling (800) 732-6643.
|
| Although it may come as a surprise when the
notice arrives, it's not unusual for your
mortgage loan to be sold to a different loan
provider.
Unfortunately, fraudulent operations have
sprung up that send false letters to
homeowners, saying that their loan has been
transferred, and to send payments to a bogus
address. Be sure to look carefully at the
notice. It should include the existing
lender and new lender, must disclose the
date of the transfer, the name, address, and
telephone number of the new lender, and the
appropriate contacts for both the old and
new lender offices.
The transfer
cannot affect the terms of the loan or
servicing provisions. Federal law also
requires a 60 day grace period during which
payments cannot be considered late nor
penalties assessed for payments that are
misdirected.
Information Courtesy of AHA, the American Homeowners
Association
|
