HUD Counseling for Reverse Mortgages Wards off Scammers
Equity in a home is, of course, one of the benefits of owning in the first place. After all, who wants to go through the loan process, make payments and pay for all the repairs involved in owning without some monetary payoff.
With no other savings, the equity can be tapped into as a lever to solve financial issues. The reverse mortgage was originally invented with this in mind.
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.
Being a loan officer, I hold most of my colleagues in esteem. I know the majority will tell the truth and give an honest assessment supported by all available knowledge.
However, a certain contingent exists in the mortgage industry, as it does in any industry, comprised of unethical individuals willing to lie, cheat and steal to do a deal.
Previously I worked as a salesman in the office machine industry. My employer had a sales motto: Do what you gotta do. And they weren't kidding! Try anything you can to get someone to bite.
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.
Federal law requires serious parties to have a counseling session with a neutral counselor of reverse mortgages, approved by HUD, before continuing with the transaction.
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.
I constantly hear about seniors getting cheated or ripped-off. HUD counseling, in the reverse mortgage business, is very useful in stopping this from happening.
With no other savings, the equity can be tapped into as a lever to solve financial issues. The reverse mortgage was originally invented with this in mind.
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.
Being a loan officer, I hold most of my colleagues in esteem. I know the majority will tell the truth and give an honest assessment supported by all available knowledge.
However, a certain contingent exists in the mortgage industry, as it does in any industry, comprised of unethical individuals willing to lie, cheat and steal to do a deal.
Previously I worked as a salesman in the office machine industry. My employer had a sales motto: Do what you gotta do. And they weren't kidding! Try anything you can to get someone to bite.
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.
Federal law requires serious parties to have a counseling session with a neutral counselor of reverse mortgages, approved by HUD, before continuing with the transaction.
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.
I constantly hear about seniors getting cheated or ripped-off. HUD counseling, in the reverse mortgage business, is very useful in stopping this from happening.
About the Author:
Get comprehensive guide to the California reverse mortgage make it over to this website. For all the skinny, go the California reverse mortgage fact sheet.
posted by Credit Counseling at
8:33 PM
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