Retirement should be a time of joy and relaxation, an opportunity to enjoy life beyond the day’s work. To secure additional income during retirement, many seniors choose to downsize their home or turn to a reverse mortgage to help consolidate debt, cover medical expenses, and have more funds to cover daily living expenses. I’m considering using it.
Unfortunately, some scammers target seniors with real estate scams designed to rob them of their golden years. However, retirees can protect themselves and their assets by being forewarned about common scams.
Stay One Step Ahead of Reverse Mortgage Fraud
In some cases, scammers will contact homeowners with an “investment opportunity” where seniors can withdraw equity through a reverse mortgage. These scammers promise huge profits but unfortunately fail to deliver and end up incurring huge losses. Another common reverse mortgage scam involves a scammer posing as a real estate agent and asking the homeowner to reverse his mortgage and borrow the funds to “fix and flip” the often non-existent There is a recommendation to invest in real estate.
According to SmartAsset.com, homeowners may contact you out of the blue about a reverse mortgage when they’ve never expressed any interest, make an offer with vague details, or make an offer that seems too good to be true. You should be wary of anyone who makes or offers such suggestions. He doesn’t seem to be willing to take “no” for an answer.
Be careful with repairs
Scammers initially gain trust by showing up at elderly people’s homes with a rental agreement for home repair equipment, and eventually return for another opportunity to help settle their debts. Specifically, they promise homeowners that they can get their money back if they buy more equipment or make more renovations.
Seniors are being pressured to sign documents they may not understand, but are actually high-interest mortgages. Once the mortgage funds are deposited into the homeowner’s account, the fake contractor requests a check or wire to pay for the renovations. CBC reports on how this scam has affected seniors in Ontario, Canada, with many victims receiving notices of new mortgages coming due in their names. I told him I was stunned.
When searching for your dream home turns into a nightmare
In one heartbreaking and headline-grabbing scam, hackers targeted a retired school teacher and her daughter who were looking for a townhome. The scammers tricked the two into sending nearly $200,000 (the retiree’s total life savings) by sending spoofed emails that looked like genuine emails they had received from lenders, title companies, and real estate agents. It is said that he was able to sell his house.
To avoid a similar fate, seniors should double and triple check every email address, URL, and spelling they receive. Good online safety practices, such as setting up two-factor authentication on your account and refraining from sharing personal information on social media, can also make it harder for hackers to guess your passwords. there is. If in doubt, always call your bank or brokerage office directly or check your payment request.
Seniors who have been targeted by scams have resources available to help and can contact the National Elder Fraud Hotline at 1-833-372-8311 for assistance.
GOBankingRates Details
Source link