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 www.seniorcitizensguide.com/pgh. Article provided by Randy Davis, NMLS # 489472, Certified Reverse Mortgage Professional at Dollar Bank, www.dollarbank.com/reversemortgages. Source: National Reverse Mortgage Lenders Association. .