Runaway Rumors Wrong Reverse Mortgages
You've seen the spokesmen on TV and youre getting solicitations in the mail about reverse mortgages. Maybe you're well versed in them and know your stuff.
A fair amount of seniors only know what they heard through the grapevine: Sisters husband, who heard from his dads friend, knows a guy who lost his house to the bank, all because he had a reverse mortgage.
Some dont know a thing about them other than what this guy they overheard at the coffee shop was saying. He talked about his brother who knew someone who had a friend with a reverse mortgage. The bank took this friends house and he had to live on the street.
In the business of reverse mortgage, there were some persons who were taken advantage of.
If a person had money questions or a financial dilemma, they would turn to their financial adviser or planner, who would then refer them to a certain reverse mortgage lender that they knew and could vouch for.
One of the biggies here in Texas was a senior would go to their estate planning company and ask them for advice on a financial matter. The estate planner would refer the customer to his buddy down at the reverse mortgage company.
Because of the financial interest in referring the individual to a reverse mortgage company, they may not have the customers best interest at heart.
With laws such as those under RESPA, and various advocates for seniors, something occurring like in the example above is now illegal. In fact, it is almost impossible to be manipulated or duped by anyone when there are so many ways to watch your back.
Don't get me wrong; a lender can still egg you on to choose a reverse mortgage, even when it may not be the wisest choice.
But dont panic. Anyone who is going through the process of getting a reverse home loan will have to meet with an approved Housing and Urban Development (HUD) adviser, before continuing with the reverse mortgage.
But even this has its checks and balances. All reverse mortgage borrowers are required to counsel with an approved HUD reverse mortgage counselor prior to moving forward with a reverse mortgage.
The counselor has nothing to gain by leading you one way or another. They are there to bounce questions off of and to check over your situation. If something is amiss you will be told what it is.
The point is if you have a financial issue or know a senior who does, and the subject of the reverse mortgage comes up, don't parrot what you've heard until you really know. You might be surprised at the truth.
A fair amount of seniors only know what they heard through the grapevine: Sisters husband, who heard from his dads friend, knows a guy who lost his house to the bank, all because he had a reverse mortgage.
Some dont know a thing about them other than what this guy they overheard at the coffee shop was saying. He talked about his brother who knew someone who had a friend with a reverse mortgage. The bank took this friends house and he had to live on the street.
In the business of reverse mortgage, there were some persons who were taken advantage of.
If a person had money questions or a financial dilemma, they would turn to their financial adviser or planner, who would then refer them to a certain reverse mortgage lender that they knew and could vouch for.
One of the biggies here in Texas was a senior would go to their estate planning company and ask them for advice on a financial matter. The estate planner would refer the customer to his buddy down at the reverse mortgage company.
Because of the financial interest in referring the individual to a reverse mortgage company, they may not have the customers best interest at heart.
With laws such as those under RESPA, and various advocates for seniors, something occurring like in the example above is now illegal. In fact, it is almost impossible to be manipulated or duped by anyone when there are so many ways to watch your back.
Don't get me wrong; a lender can still egg you on to choose a reverse mortgage, even when it may not be the wisest choice.
But dont panic. Anyone who is going through the process of getting a reverse home loan will have to meet with an approved Housing and Urban Development (HUD) adviser, before continuing with the reverse mortgage.
But even this has its checks and balances. All reverse mortgage borrowers are required to counsel with an approved HUD reverse mortgage counselor prior to moving forward with a reverse mortgage.
The counselor has nothing to gain by leading you one way or another. They are there to bounce questions off of and to check over your situation. If something is amiss you will be told what it is.
The point is if you have a financial issue or know a senior who does, and the subject of the reverse mortgage comes up, don't parrot what you've heard until you really know. You might be surprised at the truth.
About the Author:
You may have heard a few things too. Get your facts straight with this California reverse mortgage guide. More facts and and a California answer center to the reverse mortgage is here.
posted by Debt Consolidation Loan at
4:17 PM
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