Your Questions About Reverse Mortgage Lenders

William asks…

Question about reverse mortgage……?

I’m trying to find out some helpful information for my parents. They are considering a reverse mortgage, but so far my Mom has only spoke with one lender……We live in SC, and the last time they had their house appraised it was for $91,500. or somewhere around that amount…..The lady she spoke to on the phone today told her that if her house is appraised at only 91500 she will only get around $60,000. and that is before the closing cost and other fees, which all that added up to be around $14,000. Does this sound right? We were thinking that she should be able to get more than that…..If anyone has any experience in this, any advice would be appreciated. I’ve found a list on the Gov. website for hud approved reverse mortgage lenders…..Maybe she should call around for the best deal? Thanks guys and I hope everyone had a blessed Christmas!

oh yea, and if it helps any, my parents don’t have a current mortgage. They owe nothing.

God bless……

admin answers:

This is actually pretty good, they usually go to about 60% of the value.

There will not be ANY of these that will pay your mother a fair market value. They make their profit on the back end, with the equity instead of interest.

If your parents have other options they should go with those, this one is not a good deal, no reverse mortgages are.

Michael asks…

I want to know where to get a list of reverse mortgage lender in Minneapolis area with address, name, phone et

admin answers:

Hello Frankie,

Here’s where you want to go…..www.reversemortgage.org . This is the website for the National Reverse Mortgage Lenders Association (NRMLA). You will see on the left side of the page a link to ” Locate a Lender” Click on that, then use the drop down arrow to get your state, and a list of lenders with names and phones will pop up. You will also find some good information there also. For disclosure purposes, I have been in the Reverse Mortgage business for over 2 years and I’m a Reverse Mortgage Consultant for EverBank Reverse Mortgage…a National Bank that only does Reverse Mortgages. If I may suggest you call Larissa Morrell, you will find her to be a fantastic source and will guide you thru the Reverse Mortgage process.

Regards,

Stephen Greenberg
Producer/Host
Senior Solutions Radio
AM 1060 WBIX

Donna asks…

ron a reverse mortgage can the lender sell the home to a family member for more than an outside non relative?

for a lesser amount after the owners die?

admin answers:

Yes, they can sell the property to anyone they want for whatever offer they decide is the best.

John asks…

How much does reverse mortgage counseling cost?

I was reading a site called www.reversemortgageabcs.com that talked extensively about the need for reverse mortgage counseling and even where I could find a counselor. However, it did not mention how much it would cost nor did it mention whether I would have to pay for it (or if the lender would) if I decide not to proceed with the reverse mortgage.

admin answers:

The borrower doesn’t pay for it at all. The lender pays. On most, if not all, reverse mortgages, the borrower doesn’t pay anything if the loan doesn’t close. Say your appraisal is too low. You don’t pay any fees.

Look at the AARP website. They have a lot of details there. Bank of America’s website is very good. They have a calculator to give you an idea how much you might be able to get.

Susan asks…

With a reverse mortgage if owner stays in house and ends up with excessive equity does lender go after estate?

With a reverse mortgage, If owner stays in house for longer than expected and with interest, etc. ends up “upside down” — in other words, more is owed on the house than it’s current value, (of course, after the death of the owner), and after the bank sells the house can it then come to the estate to make up the difference?

admin answers:

Reverse mortgages are tricky and prone to lots of misinformation. But do not worry in this case. First, the bank doesn’t own the house so they don’t get to sell it. The heirs have a year to refinance or sell.

If the proceeds are not enough to satisfy the loan, the lender (or their insurance on the loan) absorbs the difference. This is a “non recourse rule” which entitles the lender to only the market value of the home and nothing more.

The other assets are safe.

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Your Questions About Reverse Mortgage Lenders

Mark asks…

Where can I find a list of the best Reverse Mortgage Lenders?

admin answers:

Anyways, you can find some info and resources about reverse mortgages here including a list of the top rated lenders:

http://reversemortgageresource.blogspot.com

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Robert asks…

where can I get a list of reverse mortgage wholesale lenders?

admin answers:

National Reverse Mortgage Lenders Association is you are on business side. Http://www.reversemortgagepage.com if you are a consumer.

Sharon asks…

How can I find a Reverse Mortgage lender?

And how exactly 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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John asks…

Can a reverse mortgage lender foreclosee on a home while it is still in probate?

admin answers:

Yes, of course, if the estate is not paying them they have every right to foreclose.

Laura asks…

how do i find the right reverse mortgage lender?

admin answers:

Don’t even think about it! Negative amortization is NEVER a good idea. Trust me, i deal with people everyday that owe more than their homes are worth because of reverse lending, very low arms that are now coming due etc….

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A Reverse Mortgage Discussion

Reverse mortgages are a way for seniors aged 62 and above to take cash out of their house. The equity the senior has built up over the years can be used beneficially to aid in their retirement. Here are some thoughts and ramblings about reverse mortgages that you may find helpful.

Seniors can choose to take the cash from a reverse mortgage as a lump sum, in a line of credit or in monthly payments. If

they choose a lump sum, for example, Forer said that they could pay to retrofit their home to make kitchens and bathrooms

safer and more accessible? Especially important to those who are becoming frail and in danger of falling. As one grows older

all the appliances etc. can be fitted differently to help in everyday functioning. Seniors, in a very personal way, know that

staying in their home, close to their memories and in a familiar neighborhood, can be very important factor in enjoying

retirement. Securing a Reverse Mortgage enables a senior to do that, and many companies are designed specifically to assist

seniors with reverse mortgage needs. Senior home ownership and life expectancy rates are climbing steadily and therefore more

seniors are qualifying for reverse mortgages. Accordingly, now is the ideal time to establish consumer protections so that as

the reverse mortgage industry grows, current pitfalls and hazards for consumers do not expand as well. The national reverse

mortgage lenders association does that.

When deciding what options to pursue with a reverse mortgage make sure you check the NRMLA site which forbids fraudulent

activities. Here is a direct quote from them “National Reverse Mortgage Lenders Association (NRMLA) is the national voice of

the reverse mortgage industry, serving as an educational resource, policy advocate and public affairs center for lenders and

related professionals. NRMLA was established in 1997 to enhance the professionalism of the reverse mortgage business. Our

mission is to educate consumers about the pros and cons of reverse mortgages, to train lenders to be sensitive to clients’

needs, to enforce our Code of Conduct and Best Practices, and to promote reverse mortgages in the news media.”

Seniors actively considering a reverse mortgage could certainly find value in comparing their personal expectations with the

experiences of actual borrowers. Most HECM (Home Equity Conversion Mortgage) borrowers are estimating their future ability

(or desire) to “age in place”. No one knows exactly how long you will be able to stay in your house but it is better to be

prepared for a lengthy stay. Seniors who live on a fixed income may be concerned that their retirement savings and Social

Security income may not be enough to keep up with the rate of inflation. Catastrophes and other unexpected events create

unexpected expenses that weren’t saved for. It is for these reasons that a reverse mortgage might be beneficial. Seniors are

encouraged to talk with their children about reverse mortgages and why it might be the best course of action. The reverse

mortgage has an immediate impact on many children by easing any financial burdens of helping their parents.

Carefully review the reverse mortgage to determine the type of compensation the homeowner is to receive, frequency, schedule

of receipt, amounts, etc. If the money from the mortgage establishes a line of credit, consider the entire amount of the line

of credit as a countable resource effective the month the line of credit becomes available. Carefully weigh the pros and cons

of all cash flow options. Folks in early retirement should remember that the younger they are, the less money they are

eligible to receive because of the life expectancy factor in the loan payment formula. If you wait till later in retirement

your benefits will go up because they don’t expect to pay them as long. The disadvantage of waiting is the benefits could

change because the value of the house could be less and a senior may not qualify for as much based on the equity.

When deciding make sure you talk with a counselor as early in the process as possible. They are non partial and can answer any questions you may have about a reverse mortgage. It is mandatory so why not take advantage of this formality to make sure this is the best option for you. If there are lender specific questions feel free to call me 414-531-4035 and ask for David. You may also go to David’s website for more information at http://wisconsinreversemortgages.net/

I am a financial services professional of 15 years helping seniors in credit repair, debt management, and reverse mortgages.Wisconsin Reverse Mortgage