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Reverse Mortgage

Posted on: 27th Jan, 2007 12:18 am
I have an elderly friend (86 yr old man) who recently lost his wife this year. Prior to her death (probably while she lay on her death bed) an investment company representative approached my friend and offered, what he was told a reverse mortgage. He was told he would never have a bill to pay for the rest of his life and that he can live out the rest of his life in his home. He lives on a monthly fixed income.

This gentlemen has a 3rd grade education and is not quite literate. My fear for him now is that he has been told to moved out of his home because this company owns the home and that they will be making repairs in order to move in themselves, before the end of the year. My God its almost December.

Can someone point me in the right direction as to who I can seek help from to check the credibility of this investment company and to provide some answers to my friend. Even to get documentation of what was signed. He does not have in his possession ANY signed documentation by this company because he was told by them, not to worry "we take care". The company representatives would approach my friend in a drinking establishment to have him sign paperwork on various occasions.

Oh, by the way my friend's wife was buried and all arrangements were made by this investment company with the representatives claiming to be "family", because my friend is their "uncle". My friend's burial plot has been changed to this company representative’s name along with my friend's name on the deed?
I’m terribly sorry to hear about your friend’s situation.

While reverse mortgages are legitimate, they typically come from mortgage companies and not so-called “investment” companies. And from what you describe, it sounds like this may be some sort of scam.

My advice would be for your friend to contact an attorney as soon as possible. This is not something he should try to do on his own – even with the help of friends. This is a serious matter and he needs to act fast.

8)
Posted on: 27th Jan, 2007 06:03 am
I agree with mcole to contact an attorney ASAP.
Posted on: 27th Jan, 2007 04:56 pm
Hi Micah,

Welcome to the forums.

I agree to what other have said here. It seems that your friend has fallen into some sort of trap. The investment company has actually taken advantage of his unawareness. Your friend has blindly believed the company without even trying to find out anything about their services.

Moreover, the company representatives may have misguided your friend and made him sign all papers that would eventually allow them to take over the house.

If you really wish to help you friend, then you can check for the credibility of the company from the Better Business Bureau website. If possible, help your friend find an attorney and discuss the whole situation with him. He will be the right person to give any advice in this regard.

Thanks,

Sara
Posted on: 28th Jan, 2007 05:55 am
Micah, one mistake that your friend did was not to ask for necessary documents which could have helped his case if he is going to file a lawsuit against them. Though I understand the mental situation he was in that time, no one would be careful enough to remember everything.
Posted on: 29th Jan, 2007 12:23 pm
Yes, keeping the documents does matter a lot.
Posted on: 30th Jan, 2007 03:33 am
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