Better Business Bureau warns of Reverse Mortgage Scams

The Better Business Bureau is urging homeowners in financial trouble to explore their options before signing papers transferring their deed to a third party or signing up for what they believe is a reverse mortgage application.

All Better Business Bureaus in the U.S. and Canada are issuing an international alert to help combat the growing incidences of real estate fraud, the local office said Tuesday in a news release.

Its understandable that people panic when facing the loss of their home, said Michael Coil, northeastern Indiana president and chief executive. Yet this is a situation that calls for clear-headed thinking. The BBB urges homeowners who are in financial distress to explore every alternative to keeping their home and falling victim to easy solutions.

Some scams can lead to consumers losing their homes and all the equity they had in it. Their best first step is to talk to their mortgage lender, the local office said. If a repayment schedule can't be worked out, they should consider hiring a real estate agent and selling the house to pay off the debt, the release said.