Older homeowners are often the target of fraudulent lenders. Protect yourself by becoming familiar with the more common scams carried out through loans, home improvement schemes, mortgage service abuses, and other practices.

Check the Federal Trade Commission booklet Home Equity Loans: Borrowers Beware! for examples of lender practices that can put you at risk of losing your home. 

Look for a reputable credit counseling agency through the National Foundation for Credit Counseling. Member agencies provide free or low-cost individualized, confidential credit counseling.

Be very skeptical of anyone who urges you to refinance your home or obtain a reverse mortgage to purchase an investment or insurance product, like a deferred annuity, particularly if he or she promises high returns. Consider the impact on your financial situation if the returns turn out to be less than promised or, worse, if you lose the principal.

If you cannot afford to lose the money or your home, you should not make investments with your home equity.

Older homeowners are sometimes the victim of caregivers who offer to provide services in exchange for home equity. The only document you should sign with a caregiver is an employment agreement. Never tie compensation to a caregiver with a lien against your home.

If you have devoted caregivers that you want to reward, consider leaving them a specific legacy in your will, without letting them know that you have made such arrangements.

Visit FINRA’s SaveAndInvest.org to learn about financial scams and strategies to avoid them. Once you learn the basic tactics used by unscrupulous people, it will be easier to protect yourself and your home.

Marketing materials about home equity products may look like official government programs to gain your trust and confidence. This is false advertising and should be reported to your state department of real estate or financial services.

Some sales people will try to gain your trust with an abundance of charm and too much willingness to serve your needs. Make sure that you ask the right questions anyway.

To stop unwanted calls, sign up on the Do Not Call registry online or call toll-free 1-888-382-1222 from the telephone number you want to register. Registrations become effective within 31 days of signing up and are active for five years. Political organizations, surveyors, and charities are not subject to the law, but you can ask them to take you off their phone lists.

Once a lender checks your credit report, a notation is made that you applied for a loan. Other lenders buy lists of people who have had recent credit inquiries so they can market their products to you.

You can opt out of receiving pre-screened offers by calling 1-888-5-OPTOUT (1-888-567-8688) or visiting opt out. You may also find the marketing a good way to compare various lenders.

Ask if the investment is registered with your state securities regulator or the U.S. Securities and Exchange Commission (SEC). Verify the answers on your own. There is no guarantee that a registered security will be a good investment. Although not all unregistered investments are frauds, the likelihood of fraud increases substantially with unregistered securities.

Also ask if the person selling the investment is registered with FINRA, your state securities regulator, or the SEC, and verify the answer. Visit the SEC’s website for more information on frauds and help for seniors.

Go to FINRA BrokerCheck® to check on the background of specific individual brokers or brokerage firms.

If you or someone you know has been the victim of a loan modification scam, you can report it through the Loan Modification Scam Prevention Network. Use their online complaint form; report scams.