Rumors and Reverse Mortgages Rampant
Since most seniors aren't fully informed on the facts of reverse mortgages, having this knowledge places you in a small circle of educated people.
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.
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.
Since the estate planner was paid from the referral, they were not always just serving the needs of the client.
Whether the reverse mortgage was the correct financial response to the customers issue was not the problem. The problem lies in related business relationships causing a serious conflict of interest.
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.
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 HUD counselor has no financial stake in the transaction. If it looks like a blatantly poor choice for the customer, the counselor will raise this serious question.
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 business of reverse mortgage, there were some persons who were taken advantage of.
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.
Since the estate planner was paid from the referral, they were not always just serving the needs of the client.
Whether the reverse mortgage was the correct financial response to the customers issue was not the problem. The problem lies in related business relationships causing a serious conflict of interest.
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.
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 HUD counselor has no financial stake in the transaction. If it looks like a blatantly poor choice for the customer, the counselor will raise this serious question.
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
5:07 PM
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