In Our MLO Continuing Education Courses this year, we have a section on Reverse Mortgages
I have been talking about all the factors. One aspect is the requirement that the prospects receive detailed counseling from Government Approved Counselors.
I believe that the Reverse Mortgage Line of Credit is an excellent tool for financial planning for people over 62, even if they do not need a Reverse Mortgage at this time. I have been extolling the virtues so I figured that we should practice what I preach.
This Means That I Had To Schedule The Counseling Appointment
Our agent, named David Gomer of Senior Funding in Calabasas Park, gave us a list of about twelve names. The agent cannot make any recommendations or comments, and all I had was a list of names with toll free numbers. I selected one and called and got an appointment for last week.
The hour arrived and DJ and I were ready with paper and pens in hand. No call.
After 30 minutes, I tried to call and get someone to talk to. The extensions were either down, message machine full, etc. Finally, I got one where I left a message.
Later that evening we got a call. The gentleman said that he was sorry about the problem, but the phones in Clearwater, FL, were not working as the storm had just gone through. Of all the numbers to pick I got one in the path of Irma.
The counselor called on Saturday morning, and proceeded to go through the counseling program. It was thorough and complete. I was impressed.
We Hear Stories All The Time About People Getting Cheated
They end up losing their homes or end up with no equity. David says that this Loan just does not get any respect. I agree.
At least three times Willie said,
“You can lose your home if you do not pay your property taxes, your home insurance, or maintain the property.”
One time he made us repeat that phrase.
We also went over costs, money left for heirs, fixed versus adjustable, tenure payments, all at once, growing line of credit, other options, tax consequences, being out the property for more than a year, purchasing an annuity is a no-no, catastrophic repairs, financing assisted living care, fees, mortgage insurance premiums, calculation of proceeds, must remain in home, maintaining the property, making payments, selling the property, government assistance programs and a RM, buying with a reverse mortgage, financial assessments, California regulations, etc. etc. etc.
I Believe That There Should Be Counseling For Everyone Getting A Reverse Or A Forward Loan For The First Time
It amazes me that people make statements that, “I did not know that, no one told us that, people lied to us or something similar when they lose their property.”
The Other Day An Article Quoted Some Person Who Was Losing Their Home To A RM Foreclosure
It is very tragic for anyone to lose their home, but in this case the homeowner had been given $60,000.00 two years before. No one lamenting her problem in the press asked, “What happened to the $60,000.00?”
We are in the process of a Reverse Mortgage Loan and we were explain by the Counselor and the Lender all steps necesary to go ahead with it and seems to us that in the end we will be living in our home until last day and all we have to do is keeping the house tax and insurance payment up to date plus keeping the house in good shape.
My question is why We have to worry about loosing the home, maybe that was before thia loans went to FHA? Please explain to is.
Reverse Mortgage has come a long, long way from the inception … excellent information …
The owners responsiblity to educate themselves …Thoroughly … it is their life … !!!
Your updates are always gratefully appreciated !!!
Cheers and thanks …