Senior Citizen's Guide to Cleveland 2017 Summer/Fall Edition - page 10

8
Say You Saw It in the Senior Citizen’s Guide to Cleveland
When you take a reverse mortgage, the bank owns your
home
No, you continue to own your home. And when you
pass on, your heirs own your home, though they must
then pay back the reverse mortgage. If you are in
arrears on taxes and insurance, you are in default and,
to keep your home, you must work with the lender to
catch up on your obligations.
Salesman insist a senior use the loan proceeds to purchase
another financial product as a condition for obtaining a re-
verse mortgage
No, this is not legal.
Reverse mortgage lenders aggressively push seniors to
take the proceeds in a lump sum so they can earn interest
on a high loan balance
By law a loan originator must present all options that
are available to you.
Counselors are in cahoots with the Lenders and only there
to make sure you take out a reverse mortgage
Untrue. Counselors must be independent and are
tested and certified by HUD. A counselor’s responsibility
is to the borrower, not the lender.
Reverse mortgages are expensive
Reverse mortgage fees are similar to those for any
other mortgage product. The one additional fee is the
Mortgage Insurance Premium, which is paid to the
government mortgage insurance fund to protect you in
the event the loan balance grows larger than the value
of your home.
For more information, view the longer version of this
article at
.
Article provided by Ray Chartier, NMLS # 747855, Reverse Mortgage
Specialist at Dollar Bank. Source: National Reverse Mortgage Lenders
Association.
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