The letter we expected from HUD came out and any reverse mortgage with an application signed after the 30th of September will be reduced by 10%. Moving forward, as this industry continues to change and evolve it is important to get the education and make a decision. While we never want to make snap decision we need to get the most education we can and make the right decision. I had talked to many clients who wanted to wait for the market to turn and now with a 10% reduction the market has to turn more to make the reverse mortgage work in their situation.
Lets take the time to talk about the program before HUD decided to penalize seniors again.
www.mireverse.com
Showing posts with label fraud. Show all posts
Showing posts with label fraud. Show all posts
Saturday, September 26, 2009
Tuesday, September 15, 2009
Reverse Mortgage Misconception #1
This last week I was out of the office spending some time with family and friends and had the opportunity to share a little what I do everyday. When I mentioned that I helped educate seniors on the reverse mortgage program I was met with different looks. What has become so well known to me over the years is still somewhat of a mystery to others. This stands to reason because unless you have been educated about the program it can be confusing. What adds to the confusion is a lot of incorrect information that comes from many miss informed reporters. Even Consumer Reports (who many trust to check out different products and programs) printed an article that perpetuated many misconceptions about the reverse mortgage.
The response I heard from a number of people when I mentioned the reverse mortgage program was "Ohh thats where you give people their equity and then when they die you get the house?"
They were only have right - you will get access to the equity in your home and never have to make a monthly house payment as long as you remain in the home. If you move or pass away you only have to pay back the amount you borrowed plus interest and fees. In many cases the appreciation of the home exceeds the interest and fees so in essence the home pays those charges. Rarely is all the equity used up that there is nothing left to the heirs when you are gone. If in the rare event that all the equity is gone FHA will pay any difference to the lender so our heir will never be negatively affected by a reverse mortgage.
Each situation is different and I provide free education to go over the positives, negatives and your individual numbers regarding a reverse mortgage so you can make an informed decision.
www.mireverse.com
The response I heard from a number of people when I mentioned the reverse mortgage program was "Ohh thats where you give people their equity and then when they die you get the house?"
They were only have right - you will get access to the equity in your home and never have to make a monthly house payment as long as you remain in the home. If you move or pass away you only have to pay back the amount you borrowed plus interest and fees. In many cases the appreciation of the home exceeds the interest and fees so in essence the home pays those charges. Rarely is all the equity used up that there is nothing left to the heirs when you are gone. If in the rare event that all the equity is gone FHA will pay any difference to the lender so our heir will never be negatively affected by a reverse mortgage.
Each situation is different and I provide free education to go over the positives, negatives and your individual numbers regarding a reverse mortgage so you can make an informed decision.
www.mireverse.com
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