Heartless Scammers

Con artists who specialize in reverse mortgages are heartless: They target only seniors, seeking to defraud them of the equity in their homes.

By Ann M. Harkins, President and CEO

Our seniors have worked hard all their lives to ensure the prosperity and freedoms that most of us enjoy. We owe them a debt of gratitude and respect as they savor the rewards of family, career, service to their country, and many other accomplishments. Now, in their later years, they deserve a measure of security and peace.

Many seniors savor the solace of their homes. Their homes provide memories and continuity. They may have known their neighbors for decades.

However, seniors’ financial safety nets can be porous, and some may find themselves in great need. One asset available to many is the equity in their homes. A loan product called a reverse mortgage allows seniors to tap this equity for cash or a monthly payment in return for transferring ownership of the home to the holder of the reverse mortgage when the borrower leaves the home for good or dies.

Unfortunately, con artists are out to take advantage of seniors who seek or who are eligible for these mortgages. They may swindle the borrower out of the cash lump sum or even ownership of the home. They may charge excessive amounts for counseling that is not only available to seniors free of charge, but sometimes required by law before they can take out this kind of mortgage. These scams often originate with a dinner time phone call, a knock on the door, or even a sign on a telephone pole. Scammers prey especially on seniors whom they perceive to be socially isolated.

This new con game is explored in this issue of Catalyst in “Reverse Mortgage Fraud Aims at Stealing Seniors’ Homes,” a story by NCPC’s Kelsey Tokar. This story emphasizes how crime prevention personnel can educate seniors not to fall victim to this crime through a number of measures, including saying “no” if they become suspicious, not responding to unsolicited offers, and taking documents to a trusted adviser at a financial institution or a lawyer for review.

Our senior citizens deserve better. We need to be educators and advocates for them. We need to help them keep safe from these crooks—and in their homes.