For a homeowner, the equity in the home, from a monetary angle, is the fruit of originally purchasing the home and then making all of those nasty payments.
If there are no other financial means, the borrower can use the home equity as a source of funds to solve financial problems. In fact, the reverse mortgage was originally created with this intention.
Each financial situation requiring remedy is unique. As such the reverse mortgage does not always fit well as a solution.
As a possible conflict of interest, it is marketed by people just like me, who make money only when they get a senior borrower a reverse mortgage; they don't make money by talking the senior out of it.
Now, I'm a loan officer, and I have respect for most in my business. Most of us will tell you the absolute truth and give a fair assessment based upon the facts at hand.
That being said a certain minority resides in this business (as with any business), made up of unethical individuals willing to ignore anything associated with the golden rule to get what they want.
In the copier business, where I worked in the past, my company had a saying for sales people to remember: Get it done by any means possible. They were serious about it too. Do anything possible to get that money.
In the reverse mortgage business, some people feel that way too, but stay confident. The loan officer is not your only point of contact to help you make an informed decision.
The law requires borrowers to counsel with a neutral, third-party, HUD approved reverse mortgage counselor prior to moving forward with the process of a reverse mortgage.
This gives would-be borrowers neutral educated reverse mortgage advice, who may be talked into a reverse mortgage, when they could better solve their monetary crisis in some better way. The counselor should be able to filter through any questionable items and give suggestions.
There always seems to be some scam or bilking of seniors going on. This is one way to reduce the casualties in the reverse mortgage business. - 15224
If there are no other financial means, the borrower can use the home equity as a source of funds to solve financial problems. In fact, the reverse mortgage was originally created with this intention.
Each financial situation requiring remedy is unique. As such the reverse mortgage does not always fit well as a solution.
As a possible conflict of interest, it is marketed by people just like me, who make money only when they get a senior borrower a reverse mortgage; they don't make money by talking the senior out of it.
Now, I'm a loan officer, and I have respect for most in my business. Most of us will tell you the absolute truth and give a fair assessment based upon the facts at hand.
That being said a certain minority resides in this business (as with any business), made up of unethical individuals willing to ignore anything associated with the golden rule to get what they want.
In the copier business, where I worked in the past, my company had a saying for sales people to remember: Get it done by any means possible. They were serious about it too. Do anything possible to get that money.
In the reverse mortgage business, some people feel that way too, but stay confident. The loan officer is not your only point of contact to help you make an informed decision.
The law requires borrowers to counsel with a neutral, third-party, HUD approved reverse mortgage counselor prior to moving forward with the process of a reverse mortgage.
This gives would-be borrowers neutral educated reverse mortgage advice, who may be talked into a reverse mortgage, when they could better solve their monetary crisis in some better way. The counselor should be able to filter through any questionable items and give suggestions.
There always seems to be some scam or bilking of seniors going on. This is one way to reduce the casualties in the reverse mortgage business. - 15224
About the Author:
Make sure you get a comprehensive guide to the California reverse mortgage make it over to this website. Additional info, go the California reverse mortgage fact sheet.
