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.
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.
This is a certifiable fact: Too many people speak without knowledge regarding the reverse mortgage. And moreover, too many people listen and take the face value of these uninformed individuals.
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 the escrow closed, the statement would show a fee charged to the senior, sometimes up to ten thousand dollars, for the consultation of the estate planner.
Since the estate planner was paid from the referral, they were not always just serving the needs of the client.
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.
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 youve chosen to do, they will shout it from the rooftops.
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.
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.
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.
This is a certifiable fact: Too many people speak without knowledge regarding the reverse mortgage. And moreover, too many people listen and take the face value of these uninformed individuals.
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 the escrow closed, the statement would show a fee charged to the senior, sometimes up to ten thousand dollars, for the consultation of the estate planner.
Since the estate planner was paid from the referral, they were not always just serving the needs of the client.
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.
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 youve chosen to do, they will shout it from the rooftops.
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.
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:
Perhaps youve heard some rumors yourself. Set yourself and others straight with this California reverse mortgage report. For supplemental information and and a California answer center to the reverse mortgage is here.
posted by Credit Counseling at
4:23 PM
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