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With Reverse Mortgages growing in
popularity, the misuse of these loans also grows.
Be on the lookout for these ‘Danger Signals’:
- The Lender is not licensed or doesn’t have a plan
approved by the Massachusetts Division of banks.
- You’re getting counseling only from the lender.
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Counseling is done just before or at the closing
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You’re being discouraged from talking with friends and family about a
loan.
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You’re being pressured to use equity in your home to buy something with
the proceeds.
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You’re asked for a large deposit upon applying.
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You’re told a large deposit will speed up the process.
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You’re pressured to make a quick decision.
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You’re offered a discount to sign by a certain date.
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Insurance premiums and other costs are not explained clearly.
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Your children, relatives or others are pressuring you to get a loan so they
can use the money. Even if they
promise to pay you back, the loan puts your future at risk.