Reverse Mortgage Holders Accused of Using Home Inspections to Take Advantage
of Senior Citizens
Contact Us For a Free Consultation: (215) 278-4449
Some reverse mortgage lenders, including Champion Mortgage Company and
others in the business, are accused of using deceptive and aggressive
business practices to take advantage of elderly homeowners. One of these
reverse mortgage lenders, Champion Mortgage, has been accused of using
automated software in order to trigger repeated, unreasonable, and unnecessary
property inspection requests —costing homeowners additional fees
each and every time.
About Reverse Mortgages
Also known as Home-Equity Conversion Mortgages, reverse mortgages allow
older, cash-strapped homeowners to borrow against the equity in their
homes while still continuing to live in them.
Homeowners 62 or older are eligible to apply for and receive reverse mortgages,
and no payments are owed to the lender as long as the homeowner continues
to live in the property.
The homeowner is required to pay taxes, insurances, and maintenance costs
for the home —while still being able to keep the title to the home.
However, if a borrower finds that they are unable to keep up with the regular
payment of taxes or insurance, the loan can be considered defaulted —allowing
the mortgage company to file for foreclosure on the property. When that
occurs, the mortgage company may begin ordering "drive-by" property
inspections, generally limited by law to once every 30 days.
Champion Mortgage Company is Accused of Using Automated Software to Charge Fees
Champion Mortgage Company uses automated software to order repeated, unreasonable,
and unnecessary property inspections as a way to charge excess fees to
these customers. In many instances, homeowners are being charged for these
drive-by inspections several times each month without the notice required
by the reverse mortgage agreement. The costs of these excessive inspections
are added to the total amount of the reverse mortgage loan, resulting
in a homeowner's diminished less equity in the property.
While many elderly homeowners may find reverse mortgages to be an easy
solution for fast cash, the predatory nature of reverse mortgage lenders
charging for excessive property inspections is something that no homeowner
can adequately prepare for.
Champion Mortgage Company and other reverse mortgage lenders:
- Breach the terms of the reverse mortgage contract;
- Violate the covenant of good faith and fair dealing, a mandate of all contracts
under most states' laws;
- Fail to adequately provide advanced notice of these inspections;
- Use these "inspections" as a profit center to take advantage
of reverse mortgage holders that may not understand what they are being
If you currently have a reverse mortgage with Champion Mortgage Company
or another reverse mortgage lenders, you maybe eligible to receive compensation
as a result of this mortgage lender's predatory and deceptive business
practices. To learn more about your legal options or to schedule a
free Reverse Mortgage Lawsuit consultation with a class action attorney from our firm, call (215) 278-4449. We represent
homeowners in Pennsylvania, New Jersey, and throughout the United States.