Reverse Mortgages | The Banks Abuse Seniors – Again

The Market Ticker – The Banks Abuse Seniors – Again

So says an AARP lawsuit aimed at HUD over reverse-mortgages:

“HUD has illegally and without notice changed the rules in the middle of the game at the expense of vulnerable older people,” said Jean Constantine-Davis, a senior lawyer at the AARP Foundation.

The lawsuit focuses on reverse mortgages where only one spouse signed the loan document. It argues that HUD shifted course in late 2008, making changes in its procedures so that surviving spouses who are not named on the mortgage must pay the full loan balance to keep the home, even if the property is worth less.

Isn’t that nice?

You own your house with your spouse.  You’re “encouraged” to reverse-mortgage the place with only the older spouse’s name on the note, which has the effect of increasing the monthly payments to you (because he or she is expected to live for a fewer number of years.)  Then that spouse dies and the younger one, who has plenty of time left to live, has to pay off the entire balance or lose the house.

This used to be illegal but HUD changed the rules in 2008.  Previously the surviving spouse could stay in the home until they died, irrespective of the note.  Not any more.

Of course these “reverse mortgages” come with ridiculous fees, often as much as 6 or 7% of the “reversed” balance.  This can amount to $20,000 in fees on a $300,000 property.

To put this in perspective the usual “full-in” basket of fees on a normal mortgage is a third of that – and sometimes less.

These products could have been a useful tool for cash management for senior citizens.  Unfortunately they’ve been turned into just another asset-stripping scheme for the banks and as is the usual in these schemes the government is actively conspiring with the banks to rip everyone else off.

People wonder why I believe our nation would be well-served were God to decide to send a Tsunami into Washington DC and Wall Street, wiping both clear off the map.  I will simply observe that until and unless the people rise and demand that this sort of abusive crap stop and everyone involved in it go straight to prison it not only won’t stop, it will get worse.  A dishonest entity will not quit stealing because you ask nicely – you have to force them to stop by removing their ability to do it again.

All reverse mortgages are government-guaranteed and supervised.  There is no such thing as a fully-private reverse-mortgage.  For this reason it is perfectly appropriate to consider these acts as nothing less than banks financially raping senior citizens with the full advice, consent and assistance of the Federal Government.

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Comments
13 Responses to “Reverse Mortgages | The Banks Abuse Seniors – Again”
  1. hinda says:

    I agree with all of the reply’s, except that no one tells that the Insurance company’s have to do with the making of laws, and the courts do what they are told. We have virtually lost all our constitutional rights, and the few of us that are fighting laws are losing or being killed.

  2. TREMENDOUS VIEW says:

    Thanks for history lessons!

  3. TREMENDOUS VIEW says:

    ITS A CRYIN SHAME!

  4. Pamela says:

    We lost a house this way in 2001 .I went to some pretty extreme measures to save that house but to no avail.I started telling people back then that things were really screwed up and everyone told me I didn’t know what I was talking about.Seniors are in my opinion are a protected species and as such deserve protection from all of this mess.Guess I was proven wrong one more time.This a travesty of justice and does no one good service.

  5. Pamela says:

    This is just sooo wrong in so many different ways.I have a question: did the people back in 1933 ever get thier property back when the great Deppression hit?.So far no one has been able to answer this question for me to dateThe government is so backwards and I always thought we had such a great one guess I found out otherwise.Most cultures are set up to take care of thier seniors our culture just sucks on this one.I am so glad my parents are not alive to see this or perhaps be going through it.They are probably rolling in thier graves..

    • The depression started in 1929..I believe…Hoover was in office. He lost election in ’32 or ’33…and Roosevelt won. I don’t believe anyone got their homes back…cause Roosevelt started a ‘ New Deal” to help people get back on their feet. He started FHA and another finance devision to get people back in homes…so they must have bought up the empty homes that were left by the depression…also jobs were available to build new homes.So I would say ..NO..they did not get their homes back. But remember…they did not lose them thru fraud done directly to the citizens…Wall Street crashed. Our government ran as fast as their legs could move to get bailout to the criminals..big difference than the depression. Our gov’t protected the criminals and allowed our homes to be taken with massive fraud done by the same criminals who just received our tax dollars to save their a$$es. Go figure…….But in the 30’s …at some point was the radical politic rise of the Fascism and Nazism .. a few years before the war…..

  6. Pamela says:

    Marilyn, if you could have told me a year ago that I would be going through what were all going through today,I would have told you no way.Wow I don’t believe any of this ,wish I could say I disagree with any of the points you’ve made but I have to say your assertations are correct in all facets.It seems that these people delight in picking on the elderly.As most of them are not savvy in this paticular realm ,I can only presume that they wre targeted.Don’t we have discrimination laws in regards to this and why isn’t something being done.As far as secret societies go I used to think they were all conspiracy theories but not any longer.I’m just wondering what we are all waiting for?

    • Pamela……To be honest with you….this was in the planning even before world war ‘2’… Oh ya…history is shocking…the names of those from this country..BUT were over in Europe backing Hilter, financing Hilters war…should have been hung by their b*lls and stoned. But this country let them come back..some served in our goverment after the fact…some started banks…with the nazi’s right here in this country. Families with names you know. This group has grown with the elite…those with brains that have an addiction to control…just like Hilter. A control of population all over the world. If you remember a few years back there was talk about everyone having a ‘chip’ inserted in them? That was to show under control, that person was not to own anything or sell anything. And the story goes on alot deeper. Now you see where all this is going. 9/11..still in question, millions of babies and children with mental problems…yet the government says no link to vaccines that were mandated….wars in Iraq and Afgan…for what reason…a personal reason… ALL jobs left this country…millions of homes lost to fraud/crimes…we have lost everything and have yet to have the truth told to us by our presidents…..this just didn’t start with our homes..it was planned. And the food will be next…no food…planting gardens will be banned. None of this is a secret….it all has been in the know..just spread out so no one would piece the puzzle…and the puzzle is almost complete..

    • Pam…of course there are discrimination laws. But you must realize..laws are only for us to obey…the government and the banks do not follow the laws. Their laws are made up as they go along to suit their needs..not ours. Does this not show you that we are being controlled? See, with the banks doing fraud throughout the mortgages..they were and are breaking the laws of the land…but the bank does not follow the laws of the land..they have their ‘ own ‘ set of laws…made by them and the government. Does this not tell you the banking industry controls the government? If this was not true, the government would have stopped the foreclosures and many would have been arrested just as 3,800 were sent to prison during the Savings and Loan scandle in 1987. That scandle did not ruin America as what has happened to this country in the past 10 years. The elderly irk the Obama plans…his so called health care….the elderly are an excess expense and of no use to the world they plan. So to rob the elderly of what little they have left on this earth…only shows what bastards they all are…they crawl lower than a snake..

  7. Pamela says:

    One of our most vulnerable parts of the population and they do this.No wonder we are the joke of the world.Some how I’m just not getting the warm fuzzy glow I’m supposed to feel!!!!

    • Pamela….that warm fuzzy feeling and glow went out a long time ago….we just imagined it was still with us. The difference is..WE NOW KNOW.it is NOW missing…the crimes, lies have replaced it….our government has failed the people of America….the government is an active conspiring part of the banks criminal plan to ruin America…our government has given the racketeers assistance and consent to rob and rip the citizens….YES..OUR OWN FEDERAL GOVERNMENT HAS PROVEN THIS….when a country is taken to ruins in every way and this government has no even come to the forefront….that alone tells us the government has turned on us. One is not speaking aginst the government without facts…the facts are right in front of us…and the government does not care what we feel or like…we are actually paying a high price of salaries and benefits/pensions to those who are actually against us…all while they collect bribes from the banks. The blame of all that has happened in America in the past decades, especially this past 15 years or so…one can only blame the government. .To hide in the shadows behind closed doors as the government has done only tells us they too are part of the plan of those that hide behind the banks giving the orders…..a large group of wealthly scums….wanting control…the ‘ secret society ‘.

  8. TREMENDOUS VIEW says:

    PATHETIC!

  9. Katheryn says:

    The Government learned from the mob. Loan sharking is legal by banks. We saw what they did with credit card interest rates. They tried to get away with applying it to the existing balance. As a matter of fact, I think they did, until they were made to stop. I know people who filed bankruptcy just because of these tactics. Greed does wierd things to human beings.

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