There are so many mortgage & real estate scams to look out for, and they've probably always existed, but the current housing and mortgage crisis seems to be bringing out the unethical and immoral with new vigor. Each of these scams seems to be more dastardly than the next but to be honest it just depends on which one you have read about most recently.

One of the predatory stings seems to involve someone representing himself as a contractor who is hired to make the necessary repairs required before a reverse mortgage can go through.Reverse mortgages have more built-in borrower safeguards than most types of loans. Still, when unfortunate situations like this occur, it shows that no amount of safeguards or regulations can completely insulate the borrower from predators.

Share these tips with someone you care about:

1: Be wary of ANYONE pushing the “idea” of a reverse mortgage on you. Do your own research and make sure a reverse mortgage makes sense for you. It is your money at stake! Be especially wary of anyone who tells you that they’re your only hope for getting a reverse mortgage.

2: Use reverse mortgage counseling to your advantage. Talk with the counselor about the need for repairs and the best way to get the repairs done.

3: If repairs are needed to qualify for a reverse mortgage, get quotes from several contractors and always check references.

PERHAPS MOST IMPORTANTLY

4: Never sign any document that has blanks to be filled in later.

Refer to the HUD's informational website to find more valuable reverse mortgage information.

For more tips on How to Avoid Getting Scammed by a Contractor check out the post by Irina Natchaev