For those of you even considering a Reverse Mortgage or wondering why they are such a scam, read on:
The highlights of the article are: woman takes out $180,000 loan after paying off equity credit line. Home is worth $300,000. Woman falls behind in tax payments which trigger automatic foreclosure clause for failure to pay taxes.
Next thing you know she is in foreclosure court. But wait, there’s more. The loan has now, in 10 years, blossomed to a $300,000 balance. How did that happen?
I believe that once the foreclosure process has been started, even making the taxes current won’t stop the lender from foreclosing and taking the home. These scam type loans are a boon to scammers in suits with college and even law degrees. But they are no better than the drug dealer down the street, in need of quick cash, breaking into your home with a gun and taking all the silver, artwork, cash and other valuables. Some psychopaths steal with a gun, others with a pen.
What a lucrative way to do business!
The courts don’t seem to care and there are few regulations in place to allow elders and their families to get those tax payments current.
What a shame for this woman.
The real kicker? The company doing the scam Reverse Mortgages foreclosed on 40% of homes in the program eventually–and the person doing these foreclosures is now DT’s Secretary of the Treasury. But I’m sure no one is surprised. From the scamming private sector preying on the poor and elderly, there is now an open door into government, via the New World Order and the New Administration. We are now in full Republican mode.