Reverse-Mortgage / 'Free Home Evaluation' Scam
Seniors are pressured into reverse mortgages or 'free home evaluations' that strip home equity, hide fees, or steal the proceeds — sometimes via forged documents.
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What this scam is
Scammers target older homeowners with pitches for reverse mortgages, 'free' home evaluations, or 'government' equity programs, using high pressure and misrepresented terms. Variants include: steering seniors into unsuitable reverse mortgages loaded with fees; contractors or 'advisors' who arrange a reverse mortgage and pocket the proceeds; and outright equity theft via forged documents. The home — often a person's largest asset — is put at risk. Independent HUD-approved counseling and legal review before any reverse mortgage are essential.
What it usually looks like
- Pressure to take a reverse mortgage or 'free home evaluation.'
- Claims of a special 'government' equity program.
- Contractors/advisors arranging financing and handling proceeds.
- Misrepresented terms, fees, or forged documents.
Common warning signs
- High-pressure reverse-mortgage or equity pitches to seniors.
- Someone else controlling the loan proceeds.
- 'Government program' framing for home equity.
- Rushing you past independent counseling/legal review.
Example wording scammers use
“Unlock your home's equity with our free evaluation — a special senior program, sign today!”
“We'll handle the reverse mortgage and the proceeds for your home repairs.”
These are illustrative examples written by ScamSplain, not real messages.
What the scammers want
- Fees, commissions, or the loan proceeds.
- Your home equity.
- To exploit seniors' largest asset.
What to do
- Get independent HUD-approved reverse-mortgage counseling before proceeding.
- Have an attorney or trusted family review all documents.
- Never let a contractor/advisor control the loan proceeds.
- Distrust 'special government senior' equity pitches and sign-today pressure.
What to do if you already responded
- Consult a HUD-approved counselor and an attorney immediately.
- Report to HUD, the CFPB, and your state AG.
- Report at reportfraud.ftc.gov.