Your Questions About Reverse Mortgage

Sandra asks…

How does a reverse mortgage work?

And what banks offer them?

admin answers:

A “reverse” mortgage is a loan against your home that you do not have to pay back for as long as you live there. With a reverse mortgage, you can turn the value of your home into cash without having to move or to repay the loan each month. No matter how this loan is paid out to you, you typically don’t have to pay anything back until you die, sell your home, or permanently move out of your home. To be eligible for most reverse mortgages, you must own your home and be 62 years of age or older. More information about reverse mortgages can be found here……

Http://reversemortgageresource.blogspot.com

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Joseph asks…

What do you think about a reverse mortgage?

I know someone who is thinking about doing this but we have heard a lot of bad things about it.

admin answers:

It can be a good thing under some circumstances.Due to the charges attached to them, all other choices should be looked at first.

Richard asks…

Reverse Mortgage,Which is the best Bank?

What is reverse Mortgage. Which is the best Bank.

admin answers:

I would say none since you end up with no equity in your home and your estate has to pay back these loans. Pretty much you are selling your home to the bank.

Linda asks…

How can I go about obtaining a reverse mortgage and how do they work?

admin answers:

A “reverse” mortgage is a loan against your home that you do not have to pay back for as long as you live there. With a reverse mortgage, you can turn the value of your home into cash without having to move or to repay the loan each month. No matter how this loan is paid out to you, you typically don’t have to pay anything back until you die, sell your home, or permanently move out of your home. To be eligible for most reverse mortgages, you must own your home and be 62 years of age or older. More information about reverse mortgages can be found here……

Http://reversemortgageresource.blogspot.com

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Robert asks…

how do I get a job as a reverse mortgage processor?

I want to change my field of work and I do not know where to get trained.

admin answers:

Please contact me. Our company is the largest originator of reverse mortgages in the Southwest. Depending on where you are located I may be able to get you connected with a company.

You can contact me at bburns@griffinloans.com

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Your Questions About Reverse Mortgage Scam

Richard asks…

Soo, what is a reverse mortgage?

ive seen some ads on tv about having a reverse mortgage. I have no idea what this means. Is it a scam. Dumb it down for me please lolz.

admin answers:

It’s a home loan for folks 62 and older for their primary residence. The reverse mortgage provides access to a portion of the homeowner’s equity without having the burden of monthly repayments (hence the term “reverse” mortgage).

Interest and mortgage insurance is added to the loan balance every month, so the balance owed increases. The homeowner can always make payments on the loan to bring the balance down, but it is not required. The advantage is there are no monthly payments required. The disadvantage is that there will be less equity to pass on to the heirs.

The majority of these loans are FHA insured, and they are very safe. The bank and the government do not own the home, the homeowners do, and are still responsible for the property taxes, homeowner’s insurance and the general upkeep of the home.

The homeowner can still sell the home whenever they like, pay back the reverse mortgage and keep the remaining equity as they would if they had a traditional mortgage. When the homeowners pass away, the home goes to the estate (heirs), and they can either refinance the loan into their own name or pay off the balance in full to keep the home, or do what most heirs do, which is simply sell the home and keep the remaining equity. If the property is “under water” (owe more on the balance than what the home is worth), the sales proceeds will be used to pay the loan back, and the bank will file a claim with the FHA for the remainder balance owing. No personal debt is passed on to the heirs, and the banks do not come after the heirs for the shortfall, that is why there is FHA insurance on these loans. Without the FHA insurance, no bank today would make these loans available.

The amount of equity available to the homeowners is based on the home’s value (up to $625,500), the youngest borrower’s birth date, and the interest rates. The home does not need to be “free and clear.” The vast majority of homeowners use the reverse mortgage to retire their current mortgage.

The loan is popular among senior homeowners because there are no credit score, health, assets, or employment requirements.

There are a few options available to choose from, including fixed rates and adjustable rates, and a new “Saver” reverse mortgage with closing costs similar to that of a regular mortgage (@ $2,500). There are advantages to each option, so be sure to speak with someone who will thoroughly go over all the options available.

I recommend talking to a reputable bank who has someone who specializes in these reverse mortgages. There is also 3rd party counseling required on these types of loans. The counseling is there so the homeowner can be informed about all the options available, they’ll go over the reverse mortgage in detail and what the responsibilities of the homeowner are going forward, and the homeowners can ask questions from a party not affiliated with the loan transaction. I recommend having the children, financial advisor, or elder law attorney part of the counseling session.

I do presentations on reverse mortgages almost every week, and I welcome any further questions: davidvdw@yahoo.com.

Lizzie asks…

What is a Reverse Mortgage?

Ok so my grandfather was telling me yesterday that he talk to this man who said that he qualified for a reverse mortgage. Now what is this and is this a scam?

admin answers:

Check out http://www.mortgagefigure.com for lots of articles and information to answer your mortgage questions.

Betty asks…

reverse mortgages–are they a scam?

admin answers:

No, not a scam.

But they are very expensive, for the homeowner, and for his/her heirs.

You have to do much research and due diligence before going for a reverse mortgage. If possible, avoid.

Chris asks…

can anyone tell me if this is a scam or not? a company called Senior Independence LLC.?

They want to do a reverse mortgage for my parents and i am not sure its a good idea. basically they own the house and my parents live in it till they die. no payments. i want to know if this is a scam and too good to be true..any help would be appreciated thansk!

admin answers:

The first answer on here covered it.

Carol asks…

Are reverse mortgages any good or are they scams for elderly people?

If anyone has any “horror” stories, I would like to read about them…thanks!
Please no scammers or solicitors…I will report you.
TO JUDY: yes, you got it right…my Dad did the reverse mortgage, he is almost 99 and we(me and my 2 kids) have to sell the house now after staying here for over 2 years taking care of him and the house….he will be left with almost nothing and so will we. They should be outlawed…what a disgusting thing to do to old people. His friend and neighbor warned my Dad about these type of mortgages and he never listened.
TO LANDLORD: HOW DARE YOU ACCUSE ME AND MY CHILDREN OF BEING GREEDY…YOU HAVE BEEN REPORTED FOR INSULTING US. I HAVE HAD TO LEAVE MY OWN HOME, LEAVE MY TEACHING JOB TO TAKE CARE OF MY FATHER 24/7…I DID NOT DO THIS FOR THE MONEY AND AM APPALLED AT YOUR ANSWER. I DID IT BECAUSE I AM GOOD AND LOVING DAUGHTER AND DID NOT DO IT FOR FINANCIAL REWARD OF ANY KIND. I AM BLESSED TO STILL HAVE MY FATHER AROUND,BELIEVE ME AND RESENT PEOPLE LIKE YOU WHO HAVE HEARTS OF STONE.
Nor did I say anything about him dying…I said “he will not be left with anything”…

admin answers:

I have read extensively on the subject after parents thought about it.
The idea sounds nice, get paid each month from your home.

Someday you’ll move out.
You may be 70 and not want to cut grass anymore, or injure a hip and end up in a wheelchair and want to move out.
When you move out – you’ll have nothing to your name – nothing.
Nothing to pass on to your children – children like a little incentive to take good care of you.
The costs of these mortages are high – if not outrageous – people don’t seem to look at them.
It’s a loss – loss situation.
Especially if you think you will ever move out. Which again, 90% of the people do.

It is only good, if you are in a bind, and have no children.
But a better solution – always better:
Is to sell your home – and move to a cheap apartment.
And live happy with the cash you made from the sale of your home.

Google “reverse mortgages warning”
or reverse mortage cons
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/

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