A new disturbing trend is spreading through Canada and specifically the Province of Ontario: some of the most vulnerable members of our communities, elderly homeowners, are being scammed. The door-to-door fraudsters are convincing seniors to sign agreements that ultimately rob them of their hard-earned home equity.
This deceptive scheme frequently begins with what appears to be a consumer agreement. Elderly homeowners are told they need urgent repairs or upgrades. These services are often unnecessary, grossly overpriced, or defective. What’s worse, the seniors are rushed or misled into signing documents without a clear explanation of the terms.
What many don’t realize is that these agreements are followed by the registration of a Notice of Security Interest (“NOSI”) against the title of the home. These NOSIs often claim amounts that far exceed the actual value of the services provided.
The Mortgage Trap
Once seniors fall behind on payments for inflated consumer agreements, new scammers enter the scene, claiming they can help reduce costs and ease financial struggles. They offer to “refinance” or “restructure” the debt, only to push seniors into even worse terms—high-interest mortgages that don’t benefit the homeowner. The reality is devastating:
- The mortgage funds often don’t go into the pockets of the homeowner.
- Instead, they’re generally funneled directly to the scammers to pay off the NOSIs they themselves registered, or paid to a fraudulent home renovation company.
- These mortgages are front-loaded, meaning that interest payments are prepaid from the funds, leaving nothing left for the homeowner.
Victims of this scheme typically receive so-called independent legal advice during the mortgage closing process, which is often not conducted properly. Seniors are not properly assessed for their understanding of the mortgage, and lawyers appear to be acting in the interest of the lender—not the borrower.
The result? Seniors are left with unaffordable mortgage payments, and depleted equity.
How We Can Help
If you or someone you know is a victim of this kind of fraud—there is help available. Our legal team is experienced in challenging fraudulent NOSIs and predatory lending practices.
Take action today. Don’t wait until it’s too late. If something feels off, or if you’ve recently signed paperwork you’re unsure about, contact us immediately.
416-221-9343
lawyers@lmklawyers.com