Housing scams are on the rise

@ersmommy1 (12600)
United States
January 14, 2008 7:13pm CST
The FBI expects more foreclosure scams as criminals prey on growing numbers of people desperate to keep their homes while interest rates balloon on adjustable rate mortgages,fraud also to rise in "reverse mortgages," in which homeowners 62 or older can take out a loan against the equity in their home. Unlike a traditional home-equity loan, the borrower doesn't pay back a reverse mortgage until they sell the home. Taking advantage of desperate people, old story. How would you deal with this?
1 person likes this
1 response
@sizzle3000 (3040)
• United States
15 Jan 08
The first thing people need to do is investigate their choices. There are some reverse morgages that are out there to help the elderly. The reverse morgage doesn't take money away from the old people it puts money in their pocket now. What it does is give the house to the bank instead of their children if something happens to them. There are all types of loans. I was offered the adjustable rate when I refinanced my home. I was was smart enough to know that in the end if that mortgage went up I would not be able to afford it. I also checked to see if I could afford the payment before the rate changed. This is where a lot of people made their mistake they refinanced and they did it for the full value of their home so that they had a lot of cash. They did not realize they have to pay that cash back. When I refinanced I only refied for the amount owed on my home so that I could get a lower rate. I am also in a program where I only pay the interest nothing else. This means that in ten years I will need to refinance again because my rate will go up. I have nine left now. It is important that you look at all your option and not listen to just one person. There are a lot of people who got in over their heads because of greed not fraud. I love the internet because I can do a lot more research on these loans online.