Am I a victim of reverse mortgage fraud? | In NewRetirement's Questions & Answers Forum

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QUESTION:
Am I a victim of reverse mortgage fraud?
In October 2008 I negotiated with (name witheld) Mortgage company for a reverse mortgage on my home which is fully paid for. They use a Seattle, WA branch of Bank .. ....... for their accounts. After the deal was finalized in November '08, I called my "banker" at the mortgage company, asking how long it would be before I could access my credit line. He answered, "We found a 'perfect fit'," and said I would be able to get a check soon. And I was told that Bank .. ....... would send me a Welcome package, explaing everything. That was 2 months ago and despite repeated requests for it, I have yet to receive it. Over the weeks I have called both parties several times explaining my urgent need for a check. Then finally, the bank did send 2 auto-draft forms, one of which I sent back filled in for $5.000. A lady rep at the bank said it would take 5 days to clear. On Jan. 18 I got a letter from the bank expecting an enclosed check, but it contained only another auto-draft form; the same type I had filled in the week before for 5K. This couldn't possibly be a mistake in my opinion. And this is only one example of the stalls and deceptive things they have done in their dealing with me. At this point, I now know I cannot trust in anything they tell me, and with that in mind, I am preparing for the worst. I am in process of cancelling all auto-pays from my Nevada State Bank account, and sick or not, I will begin looking for employment this week. I have been living on my Social Security checks and a dwindling bank account since I had to stop working Dec. '08. Hopefully, HUD will assist me in getting access to my credit line. I don't know what else to do. I'm 72 and I can't remember ever being so scared. I'm actually afraid to go to the supermarket because my NSBank account is dangerously low. Any advice will be a blessing. Respectfully yours, Charles Peavy - Las Vegas, NV
	asked by charliepv, 1/18/2009
Categories: Pre Retirement, Reverse Mortgage, Reverse Mortgages, Issues, Delaying Retirement

ANSWERS:
	Answered by: MikeP, 01/22/09 Overall Rating:
Hello Charles, It usually takes 30 plus days to set up an account. Your lender should have asked you what your immediate cash needs were and funded that amount at closing. As long as your loan was endorsed by FHA (2nd lien) than you will be o.k. I think your lender just dropped the ball after closing (since they get thir fee at closing anything after that time doesn't have the same urgency when customer service is not important to the lender). Stay in contact with your lender and with the help of HUD hopefully you will get your money soon. I would not panic yet. Regards, MikeP. Login to rate this answer:
	Answered by: GrantMoulden, 01/22/09 Overall Rating:
As stated by the previous response, it shouldn't take longer than 30 days to set up your line of credit. I've been in the reverse mortgage business for over five years and have never heard of this happening. If you'd like, I'd be happy to speak with you and offer to be the neutral, third party expert in your situation. (no charge whatsoever) If you feel like you need some straight answers, call me. Best of luck to you. Grant Moulden 866-488-5181 Login to rate this answer:
	Answered by: Notary, 01/30/09 Overall Rating:
I am a Notary Public, and all I do is help people sign their Reverse Mortgage documents. 1. You should have received a copy of all the documents you signed. If not, that's a violation of your loan. Reason? The right to cancel should have been one of the documents signed just in case you changed your mind and cancelled. 2. Within your documents, there should be a page with your FHA case # at the top, and about mid page, there should be an 800 # of where to call in the event you are having problems receiving your money. 3. Look for that page and call that number. FHA takes a dim view of people having problems with their respective banks. 4. You should also call the Reverse Mortgage Consultant that worked with you on this mortgage. He/she should work with you to get some viable satisfaction. And, by the way, did you rate your experience with this bank? Sounds like a zero score to me. Login to rate this answer:
	Answered by: tina, 02/25/09 Overall Rating: Be the first to rate it.
Dear Charles, I am 86. My home is paid for, no mortgages on it. I also need money at this stage in my life. I am scared of being defrauded myself or fee'd to death by unscrupulous mortgage companies. Please post again and update status on your situation at acquiring your funds. I want to know as it will help me learn about this process. God bless and I hope to read that you came out aok Charles. Login to rate this answer:
	Answered by: Dan Scerpella, 05/03/09 Overall Rating: Be the first to rate it.
To tina, I am very sorry that Charles experience has put some fear into your dealing with a Reverse Mortgage provider. I would advise you contact a well known lender. Charlies story is one Ive never heard of as the overwhelming majority of lenders involved in Reverse Mortgages are reputable and service oriented. Login to rate this answer: