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.
For some, a reverse mortgage can help make ends meet - McDowell News
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Apply for a reverse mortgage home loan quote EUR Information on home equity . - Healthy Financial Habits
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Reverse Mortgages May Bring Better Benefits Than Refinancing Your Home Loan - Red, White, and Blue Press (blog)
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Good Time to Acquire Reverse Mortgage Companies Says Investor - Reverse Mortgage Daily
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Borrower's dilemma: pay credit card bill or mortgage? (Austin American-Statesman) Borrower's dilemma: pay credit card bill or mortgage?.. | ||
Reverse Mortgage Counseling Association Launches Search Tool for . The Reverse Mortgage Counseling Association (RMCA) released a new tool to help lenders and borrowers find HUD approved counseling agencies. Consumers can use the tool to choose a HUD approved RMCA member housing counseling agency and ... | ||
More Consumers Pay Credit Card, Skip Mortgage Payments (RISMedia Real Estate News) RISMEDIA, March 11, 2010EUR”(MCT)EUR”U.S. consumers are starting to look like a frugal, debt-fearing lot as they pay down billions of dollars in credit card obligations. But an alarming trend is emerging: A small but growing number of people are skippingEUR¦.. | ||
Former Quicken spokesman starts own mortgage company - Oakland Press
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Home Values for Older Americans Begin to Rebound in Fourth Quarter 2009 (RISMedia Real Estate News) RISMEDIA, March 10, 2010EUR”Golden Gateway Financial, a financial resource for seniors and retirees, recently released new usage data from its online Reverse Mortgage Calculator that showed average home values for older Americans have halted their slide after remaining flat or decliningEUR¦.. | ||
William Mills Agency CEO Speaks at National Reverse Mortgage Lenders . - MarketWatch (press release)
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New York Fed Says to Expand Firms for Reverse Repos (Finance Technology Network) The U.S. Federal Reserve is taking an additional measure to lay the groundwork for draining excess reserves from the banking system, as it seeks to remove some of the $1 trillion in cash it injected during the global credit crisis. credit crisis... | ||
The Progressive Economics Forum » A Reverse Mortgage on Ontario's . Essentially, the government is considering a reverse mortgage: it would get a large dollop of one-time money and retain control of the house, but lose some ownership. The throne speech pledged that the government EURświll use the proceeds ... | ||
William Mills Agency CEO Speaks at National Reverse Mortgage Lenders Association Road Show 2010 (Business Wire via Yahoo! Finance) ATLANTA----William Mills III, chief executive officer of William Mills Agency, the nations largest independent financial PR and technology public relations firm, spoke February 25 at the National Reverse Mortgage Lenders Association Roadshow about the importance of public relations as part of reverse mortgage lenders marketing and advertising plans... | ||
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