Most senior citizens’ primary asset is their home. They risk losing their home or tying up title in a legal mess when they are victimized through mortgage loan fraud or when caretakers and others defraud seniors out of title to property.

Fraud artists search public records to find homes that are owned free of mortgages or have high equity, which are often homes of senior citizens. Posing as the homeowner, they fraudulently obtain mortgage loans and abscond with the money. When mortgage payments are not made, the lender forecloses, which could result in the senior losing her or his home or having to pay a lawyer to clear up the title.

Con artists also urge homeowners to invest in a "can’t miss deal," urging them to take out mortgages on their homes. The criminals take the money, and the homeowners are stuck with mortgage payments they often cannot afford.

Seniors and trusted family members should be aware that some unscrupulous people, posing as caretakers, have an unwitting senior either sign a deed conveying property to the caretaker or sign papers to take out a mortgage against the senior’s property. The caretaker then takes the property or money for her or his own use.

So-called caretakers sometimes have an unwitting senior sign a power of attorney, which the caretaker then uses to fraudulently obtain title to property or take out a mortgage. This type of fraud often occurs when the "caretaker" is a family member.

Fraud operators pose as mortgage lenders to solicit homeowners, particularly senior citizens, to take out mortgages. These people will either appear at the person’s home, make a phone call, or send material through the mail to solicit mortgages. They ask for personal information, which they then fraudulently use to obtain a mortgage or other bogus credit.

Be aware that some lenders violate consumer protection laws by targeting seniors and offer mortgage loans without fully disclosing the cost of a loan. The senior is then committed to repay a high-cost loan he or she can’t afford and risks losing the home.

Note that the law requires mortgage lenders to make full disclosure of all costs of a loan and payment amounts.

WHAT YOU CAN DO TO PROTECT YOUR HOME

·       If you receive a letter from a mortgage company notifying you of a mortgage on you home that you did not apply for, immediately call the Los Angeles County Department of Consumer Affairs Real Estate Hotline (800) 973-3370. Also, notify the mortgage company that you did not apply for the loan. The L.A. County Real Estate Hotline was set up last year to prevent homeowners, particularly senior citizens, from becoming victims of real estate fraud.

NOTE - you may have to wait for a counselor when you call the hotline, please do not hang up.

·       If you receive a notice from the County regarding a deed, call (800) 973-3370. When a loan, lien and/or deed to real property is recorded in L.A. County, the owner is sent a copy of the document and a postcard with notification. If you receive such information, read it carefully. If you don’t understand what it says, show it to someone you trust.

·       If you are a family member or friend helping a senior citizen who is unable to handle his or her financial affairs and find a mortgage on the senior's home that you were not aware of, call the Department of Consumer Affairs Real Estate Hotline (800) 973-3370. Authorities believe many fraudulently obtained mortgages are paid by unsuspecting family members when seniors are incapable of being consulted to explain that the loan is not theirs.

·       Do not sign anything without being sure you know the full consequences of what you’re signing. If you have any doubts, discuss it with someone you trust.

·       Do not give any personal information such as your social security number to a stranger. Don’t give it to a stranger on the phone, not to a loan salesman who comes to your door and don’t put it in a response to a mail solicitation.

·       If you are a family member or friend of a senior citizen, discuss real estate fraud and other issues in this web page with the senior. Encourage the senior to come to you or another trusted person with questions about financial matters. Offer to routinely help the senior with finances, such as overseeing bill-paying, to establish an environment in which the senior will feel comfortable seeking advice from you.

·       If you are a family member or friend concerned about the mental capabilities of a senior citizen in a situation that could make the person vulnerable to fraud, discuss this with a trusted lawyer or financial adviser to protect the senior.

HELPFUL TELEPHONE NUMBERS
& LINKS FOR ELDERS

District Attorney’s Elder Abuse Section (213) 974-3783
District Attorney’s Victim-Witness Assistance Program (800) 773-7574
Los Angeles County Adult Protective Services (213) 351-5401
Los Angeles County Elder Abuse Hotline (800) 992-1660
Los Angeles County Community and Senior Services (213) 738-4004
Los Angeles County Department of Consumer Affairs (213) 974-1452
Los Angeles City Department of Aging Referral Service (213) 368-4030
Better Business Bureau (909) 825-7280
National Charities Information Bureau (212) 929-6300
Contractor’s License Board (562) 590-5331 or (626) 815-8468
Los Angeles County Consumer Affairs Real Estate Hotline (800) 973-3370
California Department of Aging   (800) 510-2020
National Association for Hispanic Elderly (213) 487-1922
Association Nacional Por Personas Mayores (213) 487-1922

California Registry of Charitable Trusts P.O. Box 903447, Sacramento, CA 94203-4470