Reverse mortgageUnethical practices

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This company gave my dad a reverse mortage. He died Jan 14. I called them. I called them again. I got a probate attorney who sent them three certified letters asking for details of the loan, payback amount etc. Today, 7 days before the 6 month anniversary of his death, they call me and tell me I am in default, and must pay the balance in 7 days...BUT they can't tell me the balance until I fax them 6 documents. She says a lot of legalese, details a lot of hoops I need to jump through. Then she calls me back and says she "forgot one detail - don't be alarmed by the foreclosure letter I have to send you, just disregard it." So - they ignored my requests for information (sent with certifed death cert, copy of will, etc), the probate attorneys THREE certified letters, but imply I haven't tried to contact them? This is how these people make their money. They come in after someone has died, they wait til the end of the "grace period", use a lot of legal words and throw in foreclosure, and I bet a lot of older people or stressed out people just cave and sign the house over. Not me! I have an attorney and I'll fight them to the last on this. DO NOT GO WITH THIS COMPANY UNLESS YOU WANT TO CAUSE YOUR CHILDREN A LOT OF PAIN AFTER YOUR DEATH!

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  • Je
      Mar 23, 2010

    My mother passed away 12/31/2009. See got a Reversed Mortgage with this outfit in Nov. 2007. On January 8, 2010 I contacted Financial Freedom and they tell you that you need to do this by 3 months and if you can't then by 6 months you can do that. Since the house was only occupied by my mother, no one else resides there. Financial Freedom had someone go into my mother's home on 3/3/2010) without notifying me prior, to "winterize the home". They had the locks changed. This is LESS THEN # MONTHS and THEY ARE TAKING OVER THE HOUSE AND I, AS EXECUTOR OF HER ESTATE, HAVE NOT SIGNED ANY DOCUMENTS GIVING THEM ACCESS. Because they posted this sign in the front window that can be easily seen from the main street, in a neighborhood that has crime, I wrote them and told them that they will be held accountable if someone breaks into that house because they were stupid to broadcast like that.

    Thank goodness I had everything out of the house as I think this company is full of con-artists. Who in the world would give a loan up to $400, 000 when that home, at it's highest, may sell for $220, 000 when the housing market was good, but now only sells for $135, 000. They tell me I owe them $195, 000. I pretty much told them ... good luck, write up the deed to transfer the house back over to them and I hear nothing. Except for on March 17, 2010 I get a call from a guy calling from "Financial Sveden" (yes, took me awhile to understand what he was saying), to call Elaine about status of my mom's estate and gives me a number. I can't understand what he was saying. Tried what I thought he said - the number was wrong. And to boot... the 1-800 number on the last statement I found of theirs, the number has been DISCONNECTED!

    +11 Votes
  • Tr
      Apr 10, 2010

    As an example of what to expect of Financial Freedom

    My mother had a reverse mortgage from Financial Freedom.
    She died and I bought out my siblings share and payed off the reverse mortgage.
    The bank "Riverside National Bank" provided me the loan to do this, however they overpaid the payoff amount.
    Financial Freedom wrote a refund check for the overpayment amount but to "the estate of..." my mother.
    There never was an account "the estate of..." as my sister (the executor of the estate) and mother set up a joint bank account for this eventual demise.
    Financial Freedom provided enough info. for the bank to know exactly what the amount was, but they did not provide or request anything as to what to do with possible overpayment funds.

    Since I had no prior dealings with FF and Riverside National is not associated to my mother in any way, the refund should have been made out to myself, and it was my address that FF sent the refund check to.

    But I cannot cash it due to how it is written out and the amount is not large enough to go through the trouble getting my sister to set up an account just to cash it. The joint account was closed before I received the check. FF wrote the check out to an unverified account name.

    FF first said they did it this way due HUD regulations but no one including HUD can tell me (document) what that regulation is.
    FF then said its their policy, but I have asked for documentation on both HUD regulation and FF policy. But I'm not getting it.
    FF persist with lying to me.

    So I am paying interest to the bank Riverside National passed the loan off to, Bank of America, for an amount I do not get the benefit of.

    This is really all very clear cut and FF has all the documentation they need to properly write the check out.

    I consider this matter an act of intentional theft and interest abuse by Financial Freedom.

    And if they have done this to me, how many others have they pulled this HUD regulation or company policy crap on?

    +11 Votes
  • Ta
      Aug 30, 2010

    Don't feel like the lone ranger. The original mortgage company sold the my contract to Back of Amrican who then Raised the intereste rate and claimed all the remaining equity in the home and "Transfer Fees." Now they are requiring me to insuer the home for twice its replacement value or face foreclosure!

    +11 Votes
  • Qu
      Nov 23, 2010

    These sound like real nightmares, and should be taken seriously. However, for what its worth my wife's stepmom had a reverse mortgage with Financial Freedom and after she died the beneficiaries apparently had no trouble paying it off or dealing with the lender.

    +11 Votes
  • Sh
      Jul 09, 2013

    It is very rare these days to find blogs that provide information someone is looking for. I am glad that I have found one.

    +13 Votes
  • Sj
      Oct 03, 2013

    Financial Freedom is the worst lender of all time. They refuse to communicate, respond, comply with HUD regulations, or the law in order to force foreclosure for profit. There is a reason the FHA insurance fund just got a 1.7 billion dollar bailout with taxpayer dollars and it's not for non-payment of taxes. If you have any questions about your rights and options contact me. Sandy Jolley, Reverse Mortgage Suitability and Abuse Expert [protected] [protected]

    +9 Votes
  • reverse mortgages are nothing more than a legal way of stealing from the elderly.My mothers reverse mortgage started with celink.They brag about a "code of ethics" well, my mother and brother both passed away in a fire in her home in feb.2014..She kept her insurance up to date and never ever let any bill slide.She took out a reverse mortgage to help out a family member.The problem ? Reverse mortgage refuses to dis-close the pay back amount so we can settle this issue.It is their check, but, we can not relinquish it with -out knowing how much is rightfully theirs. This has also held up the contents check, which belong to her 4 remaining daughters. There is no code of ethics that I can see on their part.Just having us suffer day in and day out waiting to hear from them.Oh, and the copy to the reverse mortgage, I have, yet they refuse to accept it.We have a lawyer also, but evidently he is having no luck either.I think the reverse mortgage concept should be totaly shut down.Now, I have seen a commercial about reverse life insurance for the elderly.

    +12 Votes
  • Ke
      Oct 20, 2015

    Champion Mortgage is another one of those companies which try to put you into a bind!!
    They said that they paid my taxes and wanted their money-$2, 784.02 cents back in 30 days!!
    My daughter had paid them so I went to the Tax Dept. to find out what was going on and they couldn't find any where that they had paid the taxes so my daughter called them up and was told to disregard their Hand delivered, certified and 4 messages-letters that all contain the same threat!!
    I was told that I would have income when I took it out but because my brother took half the money (as an estate settlement) they couldn't give me any money but that I had to keep up the Insurance on the place and they also took out Insurance on the same place and took it out the the funds they are holding until I use up the money they lent me!! I'am also responsible for the taxes each yr and if I can't come up with the money it goes into default that same month due. IF I'd know what a mess this has been I'd probably would have sold it.
    I agree that the Reverse Mortgage should be shut down!! [protected]

    +12 Votes
  • Gm
      May 24, 2016

    I am going through the same nightmare with Champion Mortgage. I could write a book but here is the short version. Both parents have passed this last year. I sent everything in they requested in the time frame they requested requesting they contact me directly at my address, I was POA and now sole beneficiary which I sent all copies proving such. Then 30 days later their attorneys sent me "10 default letters". Yes 10, and they are adding the cost of those to the mortgage balance. Of course they sent prior and these notifications to my deceased parents address knowing full well I am not there. I called and asked why is the loan going into default and they said I did not send in "supporting documents" with my letter on "intent" where I said I was going to buy the home and was securing funding (mortgage) and the estate was going though probate. They said to send them "if" I had any. But apparently I was supposed to have some, required but they never said that?! When I talked to them they now want to set me up to do a short sale further increasing their revenue on this nightmare, minipulating the costs now to maximize their return. I wanted to buy my child hood home back but now am looking at giving it up. HUD and FHA needs to be addressed on allowing these practices to happen with out any guidance, after the deaths. I am contacting the Office of Lender Practices Activities and Program Compliance at [protected].

    +12 Votes
  • Ly
      Nov 06, 2016

    Well, my complaint is a bit different than those listed here. I married a man with a Reverse Mortgage that he had taken out 8 years before we were married. He had been divorced for 13 years prior to when we met, and never in his mind believed that he would re-marry again. Therefore, he happily signed his AIG Reverse Mortgage as the sole homeowner. This loan has now been sold? to Financial Freedom, we have no idea how or why but it was.
    The problem here is my Husband has the RM in his name only, and even though we have been married for 7 years, there is no way for me to stay in the home if he passes before me. There is also no way to add my name to the RM I am now between a rock and a hard spot wondering where I will be able afford to go without this home? Of course, I could pay off the existing RM, but the payoff has increased to over $50, 000. more than the value of the actual loan, while the house has lost value do to the housing market crash. HELP!!! :-(

    +12 Votes
  • Be
      Sep 23, 2017

    My Dad was coerced into a Reverse mortgage. Those damn things are fraudulent, deceptive, predatory and unethical...they are nothing more than legalized loan sharking. They only allow 1 borrow to sign...always the older person. They constantly want you to borrow more money. You may borrow from B. of A. Wells Fargo or some other company, but the truth of the matter is there is only 1 company...CHAMPION. Somewhere you get a notice that your mortgage was bought out by another company. Every time there is a transfer you will get charged. You re being charged interest on interest on interest. But the real nightmare begins for you heirs. They come down on you like locusts. They use intimidation and harass you constantly. The government needs to put a stop to this "program" I am sure that this was not the way Ronald Reagan meant for the senior citizens to be treated when he came up with the concept in 1981.

    +36 Votes
  • Be
      Jan 29, 2018
    Best Best Advice

    @Betsy Horton I have since I posted my complaint had to sell the house. Now that it is time to pay off the reverse mortgage to Champion ( with sub server Celink ) they are in no hurry to give me a pay off amount. First they harass, threated, and intimidate...and now they are dragging their heels for the money. I have found out through research that this is a common practice with them so that they can collect more interest on interest on interest. These reverse mortgages really need to be illegal!!!

    +36 Votes
  • Ma
      Oct 16, 2017

    I need to find out where t complaint about Champion mortgage---They are not business like, they lie, they have all these customer service people that do not know anything about your case and they do not connect you with the proper person --In March of 2017 i asked them to take over my condo.
    They said it would take 90-120 days but I have to move right away---I paid people to take my furniture clothes and expensive carpets and other items
    They told me not to worry they will take care of everything----It has been 7 months and cannot get an answer

    +17 Votes
  • Jn
      Aug 08, 2018

    Financial Freedom is very unethical and extremely hard to deal with. You never talk to the same person twice. The interest is so outrageous. I know my mother had no idea what she was getting into. First they appraised the house at way more then it was worth then add interest upon interest. These reverse mortgages should be deemed illegal.

    +11 Votes
  • My
      Nov 11, 2018

    I too have experienced the deceptive practices of Financial Freedom and once the loan was sold to Celink (Compu-Link), the abuse continues. As the daughter of parents who were scammed into a reverse mortgage, it is not enough for these institutions to steal from the elderly who do not understand what they are doing, but then for Celink to drag out the process of settling the debt in order to gain further on a home that is half the value of the escalating debt, is nothing short of abuse.

    I am trying to address Celink with the government, but I don't think that they care because money is always the motivator. Whether it's companies like Financial Freedom, Celink or government entities I have no faith in our business and government systems. Backroom deals and money. I sponsor this legislation, you scam the public and we'll pretend we have oversight of you, and oh, by the way, I have another piece of legislation...

    +8 Votes

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