Equity in a home is, of course, one of the benefits of owning in the first place. After all, who wants to go through the loan process, make payments and pay for all the repairs involved in owning without some monetary payoff.
If there are no other financial means, the borrower can use the home equity as a source of funds to solve financial problems. In fact, the reverse mortgage was originally created with this intention.
The reverse mortgage is not the perfect financial answer for every financial problem for the borrower.
A reverse mortgage is marketed by individuals who make a profit only when they can get a senior the loan. This could mean a conflict of interest as these people do not profit by telling a senior to go another route.
I am a lender, and I have a high opinion of most in my field. Nearly all loan officers will give a just evaluation, and handle opinions in a measured honest manner.
That being said a certain minority resides in this business (as with any business), made up of unethical individuals willing to ignore anything associated with the golden rule to get what they want.
I formerly worked in the copier business, and my company (which shall remain nameless) had a saying for the sales people: Whatever it takes. They really meant it too. Do whatever you have to do to make a sale.
A few people in the business of reverse mortgages feel selfishly too, but have faith. You may not see the bad guys coming, but you will have a backup consultant to spot them for you.
Prior to advancing on in a reverse mortgage transaction the law requires potential borrowers to counsel with a intermediary, HUD approved advisor.
This is a major stopgap for those being talked into a reverse mortgage who could otherwise solve the financial obstacle in some other cheaper manner. If the counselor is worth his salt he should be able to spot a bad deal and give the would-be borrower better advice.
Someone is always lying is wait to trick or take advantage of seniors, and this is one way to greatly avoid that possibility.
If there are no other financial means, the borrower can use the home equity as a source of funds to solve financial problems. In fact, the reverse mortgage was originally created with this intention.
The reverse mortgage is not the perfect financial answer for every financial problem for the borrower.
A reverse mortgage is marketed by individuals who make a profit only when they can get a senior the loan. This could mean a conflict of interest as these people do not profit by telling a senior to go another route.
I am a lender, and I have a high opinion of most in my field. Nearly all loan officers will give a just evaluation, and handle opinions in a measured honest manner.
That being said a certain minority resides in this business (as with any business), made up of unethical individuals willing to ignore anything associated with the golden rule to get what they want.
I formerly worked in the copier business, and my company (which shall remain nameless) had a saying for the sales people: Whatever it takes. They really meant it too. Do whatever you have to do to make a sale.
A few people in the business of reverse mortgages feel selfishly too, but have faith. You may not see the bad guys coming, but you will have a backup consultant to spot them for you.
Prior to advancing on in a reverse mortgage transaction the law requires potential borrowers to counsel with a intermediary, HUD approved advisor.
This is a major stopgap for those being talked into a reverse mortgage who could otherwise solve the financial obstacle in some other cheaper manner. If the counselor is worth his salt he should be able to spot a bad deal and give the would-be borrower better advice.
Someone is always lying is wait to trick or take advantage of seniors, and this is one way to greatly avoid that possibility.
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For a good education regarding the California reverse mortgage, hit this site. For all the skinny, go the California reverse mortgage fact sheet.
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