Dangers of Reverse Mortgages
There are dangers lurking in every corner even with mortgages. Do you know the dangers of reverse mortgages? There are frauds and scams that you need to be aware of so you do not lose your money. There are many reputable firms; but there are those that are fraudulent. These are usually fake sites that lure people in and charge huge amounts. Senior citizens can become a target because they are vulnerable. Information is free from HUD. These companies ask for 6-10 percent for names of lenders and filling applications. Do not sign a contract under duress from an agent.
A recent report by ASIC who interviewed 29 borrowers found that they did not understand how a reverse mortgage worked. They did know how long it would take to pay off the loan. There was no long term planning. They did not realize that this type of loan was only paid when the client died or moved into a long-term housing. This mortgage leaves borrowers with little money and unable to move into a long-term facility. On top of that, their family’s inheritance significantly dwindles. The lenders were not forthright about risks and talked the borrower into a higher amount.
Remember to get quotes from more than one lender. Look around, gather information from different sources, and compare them. This can help protect you and your estate. There are many frauds by phone, so be careful not to give out information. Keep your eyes open and beware of one of the biggest risks, foreclosure. You could find yourself in real danger and sleeping on the street! This is where buyer beware comes in. Make sure you read the fine print! Many of these documents are just adapted contracts. You could be in default for outstanding debts or uninsured property.
It is important to understand the dangers of reverse mortgages. If you have elderly family or friends make sure they know the facts and are not taken advantage of in a time of weakness. Make sure they look around, source out more than one lender, and compare the information. If not they could be left trying to re-pay an enormous debt. Lenders have to be fair too. They need to re-vamp their contracts to reflect changes. Older individuals need respect and should not have to take things on trust, especially if there is no trust there to begin with.
| Reverse Mortgages: Big Potential, Small Results Reverse mortgages should be a breakout product of demographic destiny... | ||
US News and World: What's Holding Reverse Mortgages Back - Reverse Mortgage Daily
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Is a reverse mortgage right for you? - Valley News
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Urban Seeks Feeback on Proposed Reverse Mortgage Financial Assessment Guidelines - Reverse Mortgage Daily
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Reverse Mortgage Scammer Sentenced, CFPB's Double-Take on Small Banks - Reverse Mortgage Daily
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Spending and Saving Q&A | What is a reverse mortgage? A reverse mortgage allows you to convert part of the equity in your home into cash without having to sell your home or take on additional monthly bills, according to the Federal Trade Commission... | ||
NATION: Reverse mortgages can help senior citizens, but may not be for everyone With fixed incomes and increased living expenses, many senior citizens are turning to reverse mortgages as a way to receive extra cash... | ||
Reverse Mortgage Versus HELOC for Extra Cash? A reverse mortgage needs to be on your primary residence, and you can't move out of that residence without triggering the payoff of the reverse mortgage... | ||
Boomers' $3 Trillion Nest Egg An important issue facing aging boomers is if -- and how -- to use their home equity to help secure their retirement... | ||
Internet Marketing Service Launched for California Based Financial Services . - San Francisco Chronicle (press release)
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MetLife Looking to Update Reverse Mortgage Financial Assessment - Annuity News Journal
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Is a reverse mortgage right for you? Friday, January 27 th , 2012 Issue 04, Volume 16. A reverse mortgage is a loan for senior homeowners over 62-years-old that uses some of your home equity as collateral... | ||
Who Should Do a Reverse Mortgage? Reverse mortgages allow homeowners of a certain age to draw down on their home's equity in exchange for cash--but it's not always the best financial decision for everyone... | ||
Reverse Mortgage Applications See 19% December Decline - Reverse Mortgage Daily
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Reverse mortgage vs. HELOC for extra cash? Dear Dr. Don, We own a condo in Florida and a home in Pittsburgh. I just retired at 70 years old, and now money is very tight. Can I qualify for a reverse mortgage on one of my homes? As you know, selling real estate in this market is a problem... | ||
Legislative priority: Restore Oregon's property tax deferral for seniors - OregonLive.com
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Q&A: Walking away from reverse mortgage may not be best - Kansas City Star
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Mortgage Rates Reverse Course on Positive Housing Data McLEAN, Va., Jan. 26, 2012 /PRNewswire/ -- Freddie Mac (OTC: FMCC.OB - News) today released the results of its Primary Mortgage Market Survey (PMMS ), showing average mortgage rates climbing as the housing market ... | ||
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