Reverse Mortgage Gets Bad Rap
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 reverse mortgage industry, there were some individuals who were manipulated.
A common happening in the state of Texas was, if asked for financial guidance, estate managers would send customers to a friend of theirs, who so happened to be a reverse mortgage lender.
When it came time to close, the statement showed a consulting fee was owed to the financial adviser, in the amount of 10 grand.
At close of escrow, the closing statement showed a fee up to $10,000 going to the estate planning company as a consultation fee.
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.
It is still up to you to make sure a reverse mortgage is the way to go. A lender will not always be forthright in telling you what is in your best financial interests.
But you are still not on your own, because all persons wanting a reverse mortgage must meet with a counselor, HUD approved, before proceeding with the loan.
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 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.
In closing, if you or someone you know is considering a reverse mortgage, do not take or offer advice on the subject until you've educated yourself to know the honest facts. From my experience the facts differ greatly from common folklore.
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 reverse mortgage industry, there were some individuals who were manipulated.
A common happening in the state of Texas was, if asked for financial guidance, estate managers would send customers to a friend of theirs, who so happened to be a reverse mortgage lender.
When it came time to close, the statement showed a consulting fee was owed to the financial adviser, in the amount of 10 grand.
At close of escrow, the closing statement showed a fee up to $10,000 going to the estate planning company as a consultation fee.
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.
It is still up to you to make sure a reverse mortgage is the way to go. A lender will not always be forthright in telling you what is in your best financial interests.
But you are still not on your own, because all persons wanting a reverse mortgage must meet with a counselor, HUD approved, before proceeding with the loan.
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 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.
In closing, if you or someone you know is considering a reverse mortgage, do not take or offer advice on the subject until you've educated yourself to know the honest facts. From my experience the facts differ greatly from common folklore.
posted by Debt Consolidation Loan at
4:36 PM
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