Showing posts from July, 2011

Frank Schaeffer: Christian Terror in Norway: I Predicted Terror from the Religious Right in My New Book "Sex, Mom and God"

Four Charged In Alleged $2.5 Million Reverse Mortgage Racket

These scammers are scum.

Four Charged In Alleged $2.5 Million Reverse Mortgage Racket: For their victims, the phone call sounded like salvation. Seniors, living on a fixed income and having trouble with the bills, they were glad to hear someone offering them a reverse mortgage that would allow them to turn the equity in their house into cash. But the four mortgage professionals charged with perpetrating a $2.5 million reverse mortgage fraud scheme are anything but angels. Their aftermath has left those who signed up with them impoverished and close to foreclosure.

The Miami Herald reports that the way it allegedly worked is that the mortgage professionals would call up the seniors - they only called seniors - and pitch them a reverse mortgage insured as an FHA loan. After they agreed and filled out the paperwork, the four conspired to have the homes appraised at many multiples of their value. In one case, a $31,000 condo got a value of $275,000. They then got the inflated reverse mortga…