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HUD to crack down on Reverse Mortgage Scams
WASHINGTON (CNN) -- The U.S. Housing and Urban Development department is cracking down on reverse mortgage scams that cost senior citizens thousands of dollars, according to a report in USA Today.
Reverse mortgages allow homeowners 62 and over to borrow on the value of their homes. Such loans are not repaid until the house is sold after the owner's death.
In the scams, promoters contact senior citizens by phone or mail with offers of
assistance in getting reverse mortgages. Some seniors paid up to $10,000 to the
high-pressure promoters, who provide information that HUD provides free of charge.
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