Dangers of Reverse Mortgages
There are dangers lurking in every corner even with mortgages. Do you know the dangers of reverse mortgages? There are frauds and scams that you need to be aware of so you do not lose your money. There are many reputable firms; but there are those that are fraudulent. These are usually fake sites that lure people in and charge huge amounts. Senior citizens can become a target because they are vulnerable. Information is free from HUD. These companies ask for 6-10 percent for names of lenders and filling applications. Do not sign a contract under duress from an agent.
A recent report by ASIC who interviewed 29 borrowers found that they did not understand how a reverse mortgage worked. They did know how long it would take to pay off the loan. There was no long term planning. They did not realize that this type of loan was only paid when the client died or moved into a long-term housing. This mortgage leaves borrowers with little money and unable to move into a long-term facility. On top of that, their family’s inheritance significantly dwindles. The lenders were not forthright about risks and talked the borrower into a higher amount.
Remember to get quotes from more than one lender. Look around, gather information from different sources, and compare them. This can help protect you and your estate. There are many frauds by phone, so be careful not to give out information. Keep your eyes open and beware of one of the biggest risks, foreclosure. You could find yourself in real danger and sleeping on the street! This is where buyer beware comes in. Make sure you read the fine print! Many of these documents are just adapted contracts. You could be in default for outstanding debts or uninsured property.
It is important to understand the dangers of reverse mortgages. If you have elderly family or friends make sure they know the facts and are not taken advantage of in a time of weakness. Make sure they look around, source out more than one lender, and compare the information. If not they could be left trying to re-pay an enormous debt. Lenders have to be fair too. They need to re-vamp their contracts to reflect changes. Older individuals need respect and should not have to take things on trust, especially if there is no trust there to begin with.
| Urgency for PR Campaign Increases, Vote Scheduled for NRMLA Event A prospective, large-scale public relations campaign promoting reverse mortgages and promulgated by an industry trade association would be funded through a $15 per-loan assessment by wholesalers on reverse mortgage originators (ie ... | ||
What Is a Reverse Mortgage?: HUD Reverse Mortgage Explained to EUR¦ According to the U.S. Department of Housing and Urban Development's Web site (HUD), their Home Equity Conversion Mortgage (HECM) is a reverse mortgage that is a EURœspecial type of home loan that lets you convert a portion of the equity in ... | ||
How To Opt Reverse Mortgage Loan In Canada A reverse mortgage (known as lifetime mortgage in the United Kingdom) is a loan available to seniors (62 and older in the United States), and is used to release the home equity in the property as one lump sum or multiple payments. ... | ||
Options to Pay for Home Care: Reverse Mortgage When a reverse mortgage is being explored as an option to pay for care at home, it is beneficial to better understand your options. ACC helps... | ||
Reverse-mortgage test a puzzler (The Post and Courier) Forget the bar exam for lawyers or the SATs for high school seniors. A mandatory nationwide licensing test for reverse-mortgage counselors is stumping veteran housing specialists, some of whom have been advising elderly homeowners in the Charleston area about this type of loan for years... | ||
Reverse Mortgage Application Volume Continues to Slide Says FHA - Reverse Mortgage Daily
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Willis White named board of directors for a nonprofit (The San Francisco Examiner) The San Francisco Wells Fargo reverse mortgage consultant has been named to the board of directors of the Breathe California Golden Gate Public Health Partnership, a nonprofit that fights lung disease, advocates for clean air and advances public health. White has worked with El Concilio of San Mateo... | ||
FinCEN Forms Partnership to Combat Emerging Reverse Mortgage Fraud Says Director - Reverse Mortgage Daily
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Reverse mortgages can be useful, but do your research (KMIR 6 Palm Springs) The reverse mortgage is a financial tool that is growing in popularity. Designed as a means for elderly homeowners who have substantial home equity and wish to stay in their homes, a reverse mortgage can provide tremendous peace of mind to seniors and help them stay out of painful debt... | ||
He'll only believe Bruce - NewsOK.com
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Bernanke: Record-low rates still needed (AP via Yahoo! News) Federal Reserve Chairman Ben Bernanke told Congress on Wednesday that record-low interest rates are still needed to ensure that the economic recovery will last and to help ease the sting of high unemployment... | ||
How your mortgage can lower your tax bill; You can deduct mortgage interest . - Kelowna.com
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Bernanke: Low Interest Rates Still Needed (CBS News) Federal Reserve Chairman Tells Lawmakers Record-Low Rates Still Needed to Strengthen Recovery, Aid Jobless.. | ||
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