Scam warning
Reverse Mortgage Scam
Scammers, or pushy salespeople, offer seniors a “free house” or “free money” through a reverse mortgage, then take the cash. Some try to get you to sign your house over to them, or to put the money into products that only help them.
Also called: Reverse mortgage fraud, Home equity scam, Foreclosure rescue scam
The one thing to remember
Before any reverse mortgage you must meet with a government-approved counselor. Do that first, and never sign anything you don't fully understand.
How it happens
- You're approached at a seminar, at church, by mail, or by a new “friend”.
- They promise free money from your home, or to save your home from foreclosure.
- They pressure you to sign papers quickly, or to sign your home over “temporarily”.
- The money is spent on investments or insurance that profit the seller, or simply stolen.
Warning signs
- Pressure to sign quickly.
- Being asked to sign your deed over to someone else.
- Being told to use the money to buy an annuity or investment.
- Upfront fees to “save” your home.
What to do
- Talk to a HUD-approved housing counselor for free: 1-800-569-4287.
- Have a family member or your own lawyer read every paper before you sign.
- Never sign your deed over to anyone who promises to help.
Last checked: October 31, 2026