The Department of Housing and Urban Development (HUD) along with the Federal Bureau of Investigation (FBI) has issued a special warning for homeowners over the age of 62. With the number of reverse mortgages, also know as Home Equity Conversion Mortgages (HECMs), drastically on the rise, the opportunities for fraud are immense.

“According to HUD, the number of HECM loan originations insured by the Federal Housing Administration rose from 7,923 in fiscal year (FY) 1999 to 112,013 in FY 2008, representing an increase of more than 1,300 percent. HUD-[Office of Inspector General]OIG anticipates that the number of HECM originations will rise significantly in 2009 due in part to an increase in HECM loan limits from $362,790 to $625,500. The increasing senior victim population –– currently worth $4 trillion in home equity and estimated to grow by 10,000 people per day through 2011 –– coupled with program vulnerabilities, such as the lack of income, credit, or employment qualifications, creates significant opportunities for fraud perpetrators.”

Read the rest of this entry »

As part of their “5 Tips” series on avoiding foreclosure scams, the Federal Reserve Board issued some additional tips to help “consumers select a reputable counselor and avoid fraudulent foreclosure scams.”

Some of Fed’s latest tips include: Read the rest of this entry »

There’s a lot of interest in foreclosure these days from people facing the loss of their home. For those who need to know what to do, we’ve added some information about foreclosure to our website.

This page warns about foreclosure scams that exist primarily to take advantage of people in a precarious situation.

A companion page provides information about the subject — what you need to know and where you need to go. If you are having trouble making your payments, and especially if you’re thinking of responding to offers that promise to make the problem go away, you’ll want to spend some time here.

Yesterday, Clark Howard listed several scams consumers should be particularly aware of at the moment. It should come as no surprise that economic downturns provide scammers with new and ample opportunities to take advantage of consumers trying to turn their luck around:

Foreclosure scams: A relatively new scheme, foreclosure scams originated as a result of the housing crisis. Beware of bogus agencies that promise they can keep you in your home.

Read the rest of this entry »