Reverse Mortgage Loan Blog

SALT LAKE CITY — The economy may have had a chilling effect on many legitimate mortgage options, but the FBI and the Utah Division of Real Estate say mortgage scams are alive and well.

The two agencies have released their Top 5 list of the most common, and most recent, scams in Utah.

“You have the same perpetrators you see time and time again, just finding something new,” said FBI special agent Michelle Pickens. “Fraudsters just look for new ways to reinvent.”

Pickens said one of most popular scams operating right now involves reverse mortgages. She said crooks are targeting elderly people and getting them to sign over titles to their property under the guise of a legitimate reverse mortgage.

“People are taking advantage of that by having these people get reverse mortgages, and then they’re pocketing the money and taking off with it,” she said.

Pickens said so-called “short-sale fraud” is also popular. That’s when a homeowner and a bank agree to sell the property for less than what is owed, then the homeowner turns around and sells it for more, pocketing the difference.

Builder bailout schemes are also on the list, when a builder overstates to the bank the amount that a buyer is willing to pay for a property, then he or she uses the difference as a “down payment” to allow the buyer to qualify.

The FBI says you should be wary of potential scams anytime someone is letting you live in a home for free, is offered deep discounts to move into a newly-constructed house, or has a company offering to refinance a mortgage for free.

Found here.

Bookmark It