Walking away from reverse mortgage

Thank you - yes, we definitely think it is a scam. The biggest problem is that the parents waited so long to tell us. Going to the "bank" today. Thank you again.

Many reverse mortgage loans do not yield cash to the homeowner at closing. A common example is in the case where the homeowner just wants to pay off an existing mortgage loan to eliminate the monthly payment. Another example is when a reverse mortgage is used to purchase a property.

I would strongly suggest that you contact an attorney that specializes in reverse mortgages so he can determine if there were any violations commited by the lender that would allow you to negate the transaction.

The only money that "changed hands" was from the equity in the home to the lender to cover fees. That's it. Then my parents received a letter stating their equity had dissolved due to a downward trend in the housing market. An attorney is indeed needed. We are attempting to handle this hundreds of miles away from them and they are scared and rarely will answer the phone. I am amazed at how difficult it is to help my elderly parents legally, but how easy it was for someone to "take" them. I know they ultimately signed the contract, but it was to get the group of "bankers" from JB Nutter to leave their home...for good. Just a sad situation. Thank you again.

Hi Guest,

I can understand what you must be going through. As jhelwell has said, it will be better to get in touch with the attorney in this regard. The attorney may let you know whether or not the lender scammed your parents.

Thanks