Another Reverse Mortgage Scam
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Another reverse mortgage scam has made news in California - this time in Tracy, CA. According to the Tracy Press:
Police arrested a local businessman Wednesday after he was accused of running a reverse mortgage scam on a Tracy couple.
Tracy police officer Kami Ysit said there could be more victims and more arrests from the 1½-month investigation of Michael Llamas, 22, of Mountain House.
On Wednesday morning, police served a search warrant on his business, Property Line Investments, 4600 S. Tracy Blvd., and arrested Llamas on suspicion of forgery, grand theft, financial elder abuse and conspiracy. He was released from San Joaquin County Jail in French Camp on bail of $63,000 on Wednesday.
Ysit said that a couple in their late 60s believed they had negotiated a reverse mortgage through Llamas but were dismayed to find out they had actually sold their house.
“They tried to resolve it with the suspect, but they couldn’t,” Ysit said.
“It’s something people need to be aware of,” she said. “It doesn’t appear the victims got copies of what they were signing, and they didn’t appear to be aware of what they were signing.”
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In this case, the perpetrator used a church relationship as a cover and to build a level of trust with the senior homeowner:
The couple’s daughter, who did not give her name, said her parents met Llamas through their church. She said they thought they were getting a five-year loan based on the equity of their home, valued at about $485,000.
They expected the loan would add up to about $100,000, the daughter said, and they started to get the monthly checks earlier this year.
“A month later, the neighbor said, ‘I’m sorry to hear you guys are moving,’” she said. That’s when they learned that their name was no longer on the title.
“I said, ‘I want my dad’s house back,’ and he said, ‘If you want the house back, you’ll have to buy it from me.’ Now we’re left to battle this to get the home back,” she said.
She said the warning signs are clear, in hindsight.
“None of the paperwork was explained,” she said, adding that her parents signed a stack of documents as they and Llamas discussed church and social matters.
“It was so casual. We were signing papers, right and left, and we weren’t aware of what we were signing,” she said. “My father was under the impression that the house would come back to us.”
(emphasis added)
The lessons are painfully obvious: 1) know what you’re signing and have present at any closing a competent, trustworthy advisor and, 2) do not allow a person’s association with a church or other “trusted” organization fool you into letting down your guard.
Here’s more information on reverse mortgage scams and the steps you can take to protect your interests.
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