The day of Reverse Mortgage Scams and scammers is coming to an end. Thanks to new laws and lawmakers, there have been some new measures designed on averting reverse mortgage scams. This, combined with the ready availability of honest, comprehensive reverse mortgage information on the Internet, should make Reverse Mortgage Scams a thing of the past.

The most popular form of reverse mortgage is called a Home Equity Conversion Mortgage, or HECM. This loan is sponsored by the federal government and is one of the most heavily regulated mortgages ever created. For the casual loan shark, it’s not even worth the paperwork to try to perpetrate an HECM scam. Meanwhile, state attorney generals stand ready to guard elderly citizens from the predations of unscrupulous lenders. For a state attorney general, nailing a reverse mortgage scammer is the best PR in the world.

AARP has a whole section on its Web site about reverse mortgages. Many other sites offer information about reverse mortgages. Moreover, seniors are required to sit down with a housing counselor before accepting a reverse mortgage.  Scammers are discovering that there are quicker, easier ways to make a dishonest buck than selling reverse mortgages.

Keep your hopes going because home values have been rising.  They rose in October for the third straight month, and this may be a sign of a rapid pace of recovery that has delighted economists and started a round of questions about how long the trend can last.

After the economic crises caused by the three-year descent of home values, they have  rebounded this summer fairly regularly,  at an annualized pace of almost 7 percent.  Which is not too shabby.

Because rising home prices play a key role in rebuilding the economy, as homeowners feel wealthier when their property appreciates in value and are more likely to spend money. Also, rising prices help millions of homeowners who owe more to the bank than their homes are worth.

This means that it may be a good time to look into a Reverse Mortgage.  If you do one now, and your home value is at today’s levels, and then your home appreciates quickly in an economic rebound, then your decision to do a Reverse Mortgage should pay off handsomely.

As the popularity of Reverse Mortgages continue to grow, it is important to watch out for scams and fraud that are effecting consumers and the industry. We found 2 good sources that share knowledge and information about avoiding fraud and scams.

Reverse Mortgage Scams
Reverse Mortgage Fraud

Any advice you would like to share to keep consumers safe, please post a comment below.