Elderly residents may lose home of 50 years after falling victim to reverse mortgage scam

CHICAGO — The story is all too familiar: homeowner Kerwin Cockrell said in 2014 a knock on the door of his West Humboldt Park home was followed by promises of a free home repair program. 

“Young lady came out with a flyer, asking people if they needed work done on the house, you didn’t have to have no money; just call that number and talk to Mark, Mark Diamond,” Cockrell said.

It’s a scam Diamond had been running for years: preying on elderly, black homeowners with promises of a free home repair program that in reality was a reverse mortgage. 

Kerwin Cockrell and his brother Bruce eventually agreed to sign up to get work done on their home in 2014. 

“He started working on the house, putting a new roof on the house and after that you couldn’t find him, you call him and he wouldn’t show up,” Cockrell said.

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How To Use Reverse Wholesaling For Your Real Estate Venture

Kent Clothier, a national leader in the real estate investing industry, is the Founder and CEO of Real Estate Worldwide (REWW).

If you’re just getting started in real estate, you’re likely still working a full-time job while pursuing this new venture on the side. You may want to make the leap to a full-fledged real estate business, but you need cash. In looking for a way to start generating revenue, consider reverse wholesaling.

In a wholesaling scenario, a wholesaler puts a contract on a property before finding an appropriate buyer. The final sale price is typically a bit more than the list price as a way to pay the wholesaler for their time and effort. Reverse wholesaling, as its name suggests, reverses this process. Buyers are found first, followed by properties.

I discovered this way of conducting business in real estate and wrote a book detailing strategies for entering

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What is a reverse mortgage, and how does it work?

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective.

A reverse mortgage is a type of home loan for people age 62 or older. It’s for people who have gained equity in their home since originally buying it, and likely have paid off their mortgage already.

A forward mortgage — which you probably think of as a regular mortgage — is a type of loan you’d use to buy a home. You make monthly payments to the lender until the home is paid off, and over time, your debt decreases.

A reverse mortgage, on the other hand, is used after you’ve already bought the home. The lender pays you, and the money comes out of the equity you’ve

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