Tips In Avoiding A Reverse Mortgage Scam For Your Tagum City, Davao Home

A reverse mortgage is a loan that is solely created for the senior citizens. However, there are a lot of reported cases where this specific financial product is being utilized by opportunistic scammers in order to deceive and take advantage of the elderly. These scammers commit fraud to have immediate gains from their actions.

There are a lot of scenarios or schemes that the perpetrators may make use of for this kind of deception. They typically utilize two common scams for this matter. They are, namely, equity theft as well as foreclosure rescue.

In the case of equity theft, the criminal will buy a home in Tagum City, Davao which has already been abandoned is in foreclosure. He will then let the victim occupy the house for two months. Afterwards, he will sell the house in Tagum City, Davao to the victim who takes out a reverse mortgage loan. After completing this specific transaction, the criminal will be stealing all the proceeds of such loan.

In the case of a foreclosure rescue, the criminal will be doing a research as to the names and profiles of senior citizens whose homes in Tagum City, Davao are facing foreclosure. After such identification, he will be convincing the victim that the only way to save his property from getting foreclosed is to take out a reverse mortgage loan. However, he will then inform the victim about his disqualification for the loan. As a result, the senior citizen takes out a traditional mortgage loan but the equity and the property have already been transferred to the criminal.

In most cases, the victim knows the person who commits this type of fraud. It can be the financial advisor, a friend, or even a member of the family. In this case, here are a few tips on how you can avoid a reverse mortgage scam.

• When considering a reverse mortgage loan, talk to professionals.
• Never believe anyone who claims that you can be a homeowner without paying the down payment.
• Never accept payments from others for a property that is not yours.
• Never respond to any unsolicited advertisement.
• Never sign anything without understanding it.

Nowadays, senior citizens need to be vigilant. There are people who will take advantage of your frailty and old age for their own gains. Do not be a victim to this scam.