Coffee Shop Rumors Rampant About Reverse Mortgage
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.
That puts you in the minority. Most seniors have very little idea of what a reverse mortgage actually is.
Reverse mortgages are being talked about by people who dont always know the truth, and too often seniors make unwise decisions based on what they hear without a second thought.
In the reverse mortgage industry, there were some individuals who were manipulated.
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.
When it came time to close, the statement showed a consulting fee was owed to the financial adviser, in the amount of 10 grand.
Since the estate planner was paid from the referral, they were not always just serving the needs of the client.
Thanks to current laws (such as those under the Real Estate Settlement Procedures Act) and senior advocacy groups, the kind of example above is no longer possible. Being taken advantage of is difficult with so many people on the lookout for you.
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.
Does that mean a lender wont try to talk you into a reverse mortgage even though it may not be the best financial choice at the time? No.
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.
This adviser will tell you the honest truth because there is nothing in it for them. They are there to guide, and if your outlook isn't the best based on what you've chosen to do, they will shout it from the rooftops.
You may be considering or your know someone who is considering a reverse mortgage. Everyone seems to have an opinion. Some are based upon the facts, but most are total hogwash. Get your facts straight before you form your opinion.
That puts you in the minority. Most seniors have very little idea of what a reverse mortgage actually is.
Reverse mortgages are being talked about by people who dont always know the truth, and too often seniors make unwise decisions based on what they hear without a second thought.
In the reverse mortgage industry, there were some individuals who were manipulated.
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.
When it came time to close, the statement showed a consulting fee was owed to the financial adviser, in the amount of 10 grand.
Since the estate planner was paid from the referral, they were not always just serving the needs of the client.
Thanks to current laws (such as those under the Real Estate Settlement Procedures Act) and senior advocacy groups, the kind of example above is no longer possible. Being taken advantage of is difficult with so many people on the lookout for you.
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.
Does that mean a lender wont try to talk you into a reverse mortgage even though it may not be the best financial choice at the time? No.
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.
This adviser will tell you the honest truth because there is nothing in it for them. They are there to guide, and if your outlook isn't the best based on what you've chosen to do, they will shout it from the rooftops.
You may be considering or your know someone who is considering a reverse mortgage. Everyone seems to have an opinion. Some are based upon the facts, but most are total hogwash. Get your facts straight before you form your opinion.
About the Author:
Perhaps youve heard some rumors yourself. Download a tremendous California reverse mortgage guide here. For supplemental information and the best responses to top questions about the reverse mortgage in California are here.
posted by Credit Counseling at
5:13 PM
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