The Oxford Club Solution to Reverse Mortgage Scams Targeting Seniors

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Oxford Club financial mortgage advice

In the recent post from The Oxford Club newsletter, Wealthy Retirement, the Club advises against a new scam targeting seniors. Reverse mortgage scams are arguably the worst senior scams today because they are orchestrated by trusted lenders, advisors or supposedly professional contractors whose aim is taking advantage of elderly folks in need of funds.

It is common knowledge that seniors are scammed mostly by people they know or trust, i.e., family members, caregivers, lawyers, doctors or bankers. Financial planners, realtors, and contractors have joined this list of scammers.

How is a reverse mortgage scam carried out?

To understand how reverse mortgage scams are carried out, it’s important to define the term. Reverse mortgage is a term used to explain a financial agreement (home loan) where a homeowner parts with equity in their home in return for regular payments at a future date. Most homeowners in reverse mortgage agreements today get reverse mortgages to supplement their retirement income. They use home equity built over the years and defer payment on the loan until they move out or die.

Reverse mortgage scams are being carried out by contractors, realtors and financial planners. In a typical reverse mortgage scam today, contractors are arranging for reverse mortgages to cater for expensive renovations or repairs. Contractors orchestrating reverse mortgage scams use their proximity/accessibility to convince unsuspecting senior homeowners, i.e., by using taglines such as; ”we are in your neighborhood for the next few weeks. We can do the work before we leave.”

Elderly homeowners are being promised big home renovation/repair jobs at incredibly low prices. The low cost causes many to overlook any warning signs. Since the scammers approach unsuspecting homeowners with home projects they have always wanted to undertake and the price is great, the homeowners ignore the fact that they might not know them.

Scammers are going as far as offering to get their victims reverse mortgages to pay for the job and even giving them the option of never having to pay (when payment is due after death). The main aim of the scammers is to have elderly homeowners sign away their equity in return for repairs or renovations which never get done but are paid off after death. Once a homeowner applies and gets the reverse mortgage, money goes to a contractor that didn’t do the job in the first place.

Finance professionals are also part of this scam since some have been recommending reverse mortgages to elderly homeowners as a means of buying life insurance, annuities, and stocks among other personal finance/investment products. Some unscrupulous financial professionals are convincing elderly homeowners to convert their home equity to capital gains or an income stream yet it is not prudent to borrow to invest if you are not a pro.

Realtors haven’t been left behind in reverse mortgage scams. Unscrupulous realtors are using reverse mortgages to purchase low-cost homes and flip them for a profit. Reverse mortgage scams usually leave retired homeowners with debt and homes worth much less than the actual purchase price. These homes find themselves in the market at incredibly low prices after which they are bought quickly by realtors and flipped for a profit.

Verdict

It can be tough making ends meet after retirement. Reverse mortgage scams are packaged as great solutions for retired homeowners in need of some money for home repairs/renovations without having to pay anything. What’s more is the solution comes from familiar or trusted sources or is packaged as a great deal. The most important thing to note is; you can’t re-grow the equity in our home. Once you use it, it’s gone forever. If you get a reverse mortgage offer to pay for anything, it’s most likely a scam! It will definitely cost you (or those you leave behind). There are better solutions for retirement issues surrounding finances.

Keep up with more related news from Analyst of Finance: http://analystoffinance.com/2017/11/improving-housing-market-means-loans-continue-to-get-risky/

The Oxford Club

The Oxford Club, which is one of the most successful global private networks for investors and entrepreneurs helps its members grow and protect their wealth. The Club’s mission is to help its members create extraordinary and long lasting wealth.

As an Oxford Club member, you have an opportunity to invest in your financial freedom and prepare for retirement under the guidance of real financial experts in the global arena. The Oxford Club goes as far as giving free offerings/publications such as the Wealthy Retirement for individuals who would want to enjoy their golden years.

The Club offers recommendations on real estate, bonds, options, precious metals, currencies, and collectibles that help its members beat the market consistently. Members also enjoy some of the highest business and social connections globally thanks to the club’s global presence. The Oxford Club has members globally spread between many countries internationally.

As a subscriber to the Oxford Club’s free offerings such as Wealthy Retirement, you get free priceless information on retirement planning, dividend investing, bond investing, market trends and much more. You also get access to valuable resources on; investing with less risk, getting higher returns and financial calculators such as a dividend reinvestment calculator. The Wealthy Retirement highlights dividend investing as one of the best/most powerful wealth building strategies.

The Oxford Club, through Wealthy Retirement also offers free access to investment reports. Wealthy Retirement subscribers get free investment reports that help them build as well as preserve their wealth in retirement. Get access to unique retirement income ideas to help you fund your retirement lifestyle. The reports can help you avoid reverse mortgage scams among other retirement scams popular today. Discover how you can turn your current portfolio into a dividend income generating machine. The Oxford Club’s publications cater to everyone from novice to expert investors.

Educational resources

The Oxford Club also offers free educational resources through its educational arm, Investment U which is among the first ever independent financial educations sites. The website has videos and courses among other educational resources that can help you become financially independent. Investment U has a free e-letter which offers daily actionable investment recommendations. The arm also holds conferences and offers courses on behalf of the Oxford Club to help members become knowledgeable investors.

The Oxford Club offers many unique benefits to its members and resource subscribers. The most notable benefits include; networking, a unique investment philosophy, investment resources, access to some of the best financial experts in the world and property exchange opportunities where members have the chance to network on real estate opportunities.

Visit the Oxford Club to learn more and don’t forget to connect with members on Twitter.

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