Reverse Mortgages

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Reverse Mortgage Scams

Reverse Mortgage Scams

(Alternate title: Dealing with My Stupid Criminal Loan Officer Peers)

NJ Reverse MortgagesI wish I could say that this was a "stupid criminal" situation like Jay Leno loves to see.  It is not. If you would like to get really ticked off, read on.  I received a call two days ago from a reverse mortgage client of mine. They closed about a year ago. Mr. Jones (as we will call him) called me to ask me this question:

"I recieved a call today from a loan officer. He said that the mortgage company that we closed our loan with went out of business, and that we need to sign new paperwork. He said he was going to send us a new mortgage package. He told us to just sign everything and send it back. Is this right and should we sign?"

Reverse Mortgage QuestionDoes it make you start to wonder how many seniors are scammed this way? 

Just in case you are wondering, once a loan is closed, you can have 1,000 banks go out of business. YOU DON'T NEED to resign anything.  This scenario above is a complete scam. And I hope it makes you as irrate as it makes me!

One would hope that after all the industry changes in the past year that the scum in this business would be gone. Nope. They just have invented new ways to crush someone to make a fast buck.

The great news is that Mr. Jones still had my number handy and called me first. That move just saved him $1,000's plus massive heartache.  (the LAST thing a senior in his late 70's needs!!) I plan to have Mr. Jones tell the loan officer to send that new loan package out, so that I can then go personally pick it up, and forward the same scenario to any and every banking official I can get a hold of.

Steve Kappre is a mortgage loan officer in New Jersey. For more info or questions feel free to contact Steve.

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Comment balloon 18 commentsStephen Kappre • June 03 2010 10:20PM

Comments

WOW!  It is amazing what some people will do to make a buck.  I hope he sends the paperwork so you can get some charges filed. 

Posted by Lori Liveston (Virtual Homes, Real Estate) over 8 years ago

Hi Steve, how awful that the scammers not only seek us out on email, but now target the reverse mortgage people as well.

Posted by Liz Flint, Houston\Tomball Realtor (832)816-8066 (Century 21 Hardee-Team Realty) over 8 years ago

Lori - I always thought ... if people worked as hard putting work into a legitimate business, that they wouldn't need to scam. I hope that paperwork comes back too!

Liz - It seems there will always be scum, regardless of the regulating taking place.

Posted by Stephen Kappre, Helping You Home (KW Hometown) over 8 years ago

Steve - It is really hearbreaking when I hear of the despicable people out there who take advantage of our seniors at every opportunity they can.   Scam artists like this should be stopped in their tracks for using these types of tactics.

Posted by Donna Bigda, Greater New Haven CT Real Estate (RE/MAX Alliance) over 8 years ago

Donna - It breaks my heart to. I just can not fathom how anyone can do such a thing.

Posted by Stephen Kappre, Helping You Home (KW Hometown) over 8 years ago

Thanks for the heads up, this is a new one I was not aware of.

Posted by Dan Edward Phillips, Realtor and Broker/Owner (Dan Edward Phillips) over 8 years ago

Steve.....so much of this happens to seniors.....it's really disgusting.

Posted by Barbara Todaro, "Franklin MA Homes" (RE/MAX Executive Realty ) over 8 years ago

I hate to see this happen, darn it.

I recommended for a feature because we need to get the word out.

 

Posted by Missy Caulk, Savvy Realtor - Ann Arbor Real Estate (Missy Caulk TEAM) over 8 years ago

Dan - Me too. They work hard to invent new ways to scam people every day!

Barbara - It is disgusting. I have no clue how people can live with themselves and do such things.

Missy - I can't tell you what I would like to do to those bad guys ...

Posted by Stephen Kappre, Helping You Home (KW Hometown) over 8 years ago

Steve, This is sickening. My elderly parents are still with me and I would be horrified if something like this happened to them.  Nice that your client had you to call and was smart enough to do that. I hope you will update us on what happens.

Posted by Barb Szabo, CRS, E-pro Realtor, Cleveland Ohio Homes (RE/MAX Trinity Brecksville Ohio) over 8 years ago

People target the eldery in hopes to find desperation.  People will do anything when they are desperate.  These clients of yours worked hard for many many years and do not deserve to be disrespected in the way.  It used to be the "way of the world" to take care of the elderly, now they are being used and disregarded like garbage.  It is so sad.

Posted by Andrea Kappre, New Jersey Realtor, New Jersey MLS, Homes for Sale in NJ (Old World Realty) over 8 years ago

Steve,

Thank goodness the gent picked up the phone to check with a legit mortgage officer! Think about those who just sign on the dotted line.

Posted by Irene Kennedy Realtor® in Northwestern NJ (Weichert) over 8 years ago

Steve that scammer is a wicked varmint. How nice it is to have that people connection you have w/ clients, they felt they cold just pick up the phone and speak to 'Da Man'!

Posted by Cynthia Bartch, Redesigned Spaces; All Round Nice Gal (Home Stager/Property Stylist & more! Granville, Ohio) over 8 years ago

hey, Steve!

Keep up the good fight.  I just have to believe that the guys in the white hats will win....always!

Posted by Christine Hooks, Celebrating 25 Years in Real Estate! (Pino Agency) over 8 years ago

Hi Steve-

I'm sure that you will be reporting these people. Thank heaven that your clients knew to call you.  it worries me how many people would not know where to go for help - especially if their former lender Did go out of business.

Thanks for posting!

-Sara

Posted by Sara Woolford & Steve Golson, ALHS (iTexas Realty Co.) about 8 years ago

scamming seniors;

that should be like double the fine for speeding in a new construction area with workers present.

double, triple the fine for scamming seniors.

Posted by Jay Beckingham, Seniors ROCK! (Fairway Independent Mortgage Company) about 8 years ago

Hey Steve, 

So how did this one turn out?  Did he tell the scammer to send the package so you could take a look at it?  They need to be turned in and exposed for their scam although it probably wouldn't do any good, they start right back up again, I'm sure..

Posted by Chanda Barrick, in referral (Keller Williams Indy Metro Northeast) about 8 years ago

How terrible...Thanks for sharing... unfortunately, the older people are often the prime targets for real estate and financial scams. 

Posted by Inna Ivchenko, Realtor® • Green • GRI • HAFA • PSC Calabasas CA (Barcode Properties) about 1 year ago

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