Warn seniors to be cautious when considering home repair contracts paid for by a reverse mortgage.
In Cleveland, the Office of Fair Housing and Consumer Affairs has received complaints from seniors who were unaware that they had signed reverse mortgages after being solicited by remodeling contractors to do work on their home. In some cases, the contractors have taken all of the proceeds from the homeowner and performed little or no work. The contractors tell seniors that there is a Federal Housing Administration (FHA) program to help pay for the repairs but in fact the seniors are left with a Home Equity Conversion Mortgage (HECM), commonly known as a reverse mortgage. Caution seniors NOT to rely on advice from anyone who recommends such a product or service. For additional information:
- Consumers in the City of Cleveland with questions about possible scams can call the Office of Fair Housing and Consumer Affairs at 216-664-4529.
- Consumers with questions about reverse mortgages can call Neighborhood Housing Services of Greater Cleveland at (216) 458-4663.
- Consumers who want to file a complaint should contact the Ohio Attorney General’s Consumer Protection Department at 1-800-282-0515 or online here.