Reverse Mortgages are becoming increasingly popular in this country. According to the Wall Street Journal, Fannie Mae estimates that 16 million households will seek reverse mortgages by 2010.
October 7, 2005 (Press Release) --
1st Reverse Mortgage USA™, a division of Mountain Pacific Mortgage, a Colorado based full service mortgage banker specializing in net branching, commercial loans and reverse mortgages today highlighted their list of “Reverse Mortgage Safeguards”.
Reverse Mortgages are becoming increasingly popular in this country in part because the borrower(s) makes no payments to the lender as long as the home is used as the primary residence. Also, there are no restrictions on the use of funds from a reverse mortgage, nor do they affect social security or taxes. According to the Wall Street Journal, Fannie Mae estimates that 16 million households will seek reverse mortgages by 2010.
“A reverse mortgage is extremely safe. The reverse mortgage is insured by the Federal Housing Authority (FHA) and so is guaranteed by the federal government. You continue to own your home, but simply reduce the amount of equity in exchange for additional liquid or accessible cash. The money plus interest is paid back when you sell your home, permanently move out of your home, or when the last surviving borrower dies,” said Barry Scoles, division manager of 1st Reverse Mortgage USA™. “Your heirs are never responsible for a reverse mortgage debt. If your home does not sell for enough to cover the reverse mortgage, the FHA insurance will pay the difference.”
Following are just a sample of the many safeguards that will give borrowers peace of mind about their decision to participate in the Reverse Mortgage program. Reverse Mortgage Safeguards:
Safeguard #1: The federal government, not the lender, controls the amount of your reverse mortgage, the interest rate, the terms of the loan, and the fees that can be charged. This allows you to select a lender based on their knowledge, experience and reputation … not on who is offering the "best deal".
Safeguard #2: First meeting with your Reverse Mortgage lender is for informational purposes only. Federal regulations prohibit any lender from taking any action in processing your reverse mortgage until you have received mandatory independent counseling from a HUD certified reverse mortgage counselor. The counseling is free, and is available at various housing and non-profit agencies in most communities. If necessary, phone counseling is also available through AARP.
Safeguard #3: Federal regulations mandate that your reverse mortgage is a no recourse loan. This simply means that under no circumstances can you or any member of your family be held personally responsible for repayment of any part of the debt. When the home is sold by you or your heirs, if the sales proceeds are not sufficient to repay the debt in full, the balance due the lender is either forgiven or paid by the government’s insurance agency.
Safeguard #4: Government control of the Reverse Mortgage program guidelines assure that no lender can take unfair advantage of you. You will receive third party, independent counseling to verify the accuracy of the information you have received, and neither you nor your heirs can ever be held personally responsible to repay any part of the debt.
Reverse Mortgages are becoming increasingly popular in this country in part because the borrower(s) makes no payments to the lender as long as the home is used as the primary residence. Also, there are no restrictions on the use of funds from a reverse mortgage, nor do they affect social security or taxes. According to the Wall Street Journal, Fannie Mae estimates that 16 million households will seek reverse mortgages by 2010.
“A reverse mortgage is extremely safe. The reverse mortgage is insured by the Federal Housing Authority (FHA) and so is guaranteed by the federal government. You continue to own your home, but simply reduce the amount of equity in exchange for additional liquid or accessible cash. The money plus interest is paid back when you sell your home, permanently move out of your home, or when the last surviving borrower dies,” said Barry Scoles, division manager of 1st Reverse Mortgage USA™. “Your heirs are never responsible for a reverse mortgage debt. If your home does not sell for enough to cover the reverse mortgage, the FHA insurance will pay the difference.”
Following are just a sample of the many safeguards that will give borrowers peace of mind about their decision to participate in the Reverse Mortgage program. Reverse Mortgage Safeguards:
Safeguard #1: The federal government, not the lender, controls the amount of your reverse mortgage, the interest rate, the terms of the loan, and the fees that can be charged. This allows you to select a lender based on their knowledge, experience and reputation … not on who is offering the "best deal".
Safeguard #2: First meeting with your Reverse Mortgage lender is for informational purposes only. Federal regulations prohibit any lender from taking any action in processing your reverse mortgage until you have received mandatory independent counseling from a HUD certified reverse mortgage counselor. The counseling is free, and is available at various housing and non-profit agencies in most communities. If necessary, phone counseling is also available through AARP.
Safeguard #3: Federal regulations mandate that your reverse mortgage is a no recourse loan. This simply means that under no circumstances can you or any member of your family be held personally responsible for repayment of any part of the debt. When the home is sold by you or your heirs, if the sales proceeds are not sufficient to repay the debt in full, the balance due the lender is either forgiven or paid by the government’s insurance agency.
Safeguard #4: Government control of the Reverse Mortgage program guidelines assure that no lender can take unfair advantage of you. You will receive third party, independent counseling to verify the accuracy of the information you have received, and neither you nor your heirs can ever be held personally responsible to repay any part of the debt.
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