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Reverse Mortgages: The Elderly Need to Beware of Lenders and Relatives

Los Angeles Times:  “Older Americans who seek reverse mortgages need family members and friends to help protect them from being exploited by lenders and even their children.  The recent conviction of a Long Island woman who stole the home of a 93-year-old retired barber suffering from Alzheimer’s disease should serve as a warning to the friends and relatives of elderly people about the surprising ease with which some older homeowners can be exploited financially.  The elderly are victimized to the tune of $2.6 billion a year, according to a recent report from MetLife’s Mature Market Institute.  And that’s a conservative guess because it has been estimated that only one in 25 cases of financial abuse is ever reported to authorities.  At a conference last month of specialists in reverse mortgages, a financial tool that seniors can use to tap into the equity they have in their homes without having to sell or move out, lenders were asked to help uncover ploys and schemes designed to fleece unsuspecting and often overly trusting seniors.”

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