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Predatory Lendors Targeting Senior Home Equity

Wed, 05/23/2001 - 12:00am — Karen Stevenson
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AARP is launching a campaign, called "I didn't know I could lose the house," to let seniors know they are being targeted by predatory lenders. These lenders are convincing older homeowners to sign up for high-cost and unnecessary mortgages on their homes. In many cases, these loans are "subprime" loans, which are loans made to individuals with an impaired credit history who have assets (like a home) which can be used as collateral for a loan. The AARP reports that borrowers age 65 and above were three times more likely to hold a "subprime" mortgage than borrowers under age 35. AARP has set up a web site with more information, and is reminding seniors that reverse mortgages probably make more sense for older people who need to tap into the equity in their homes.

AARP is launching a campaign, called "I didn't know I could lose the house," to let seniors know they are being targeted by predatory lenders. These lenders are convincing older homeowners to sign up for high-cost and unnecessary mortgages on their homes. In many cases, these loans are "subprime" loans, which are loans made to individuals with an impaired credit history who have assets (like a home) which can be used as collateral for a loan. The AARP reports that borrowers age 65 and above were three times more likely to hold a "subprime" mortgage than borrowers under age 35. AARP has set up a web site with more information, and is reminding seniors that reverse mortgages probably make more sense for older people who need to tap into the equity in their homes.