A few weeks ago, Money Management International started offer 3500 free counseling session to seniors who were thinking about applying for a Reverse Loan. Since then the National Council on Aging as arranged the same offer through their Reverse Mortgage Counseling Services (RMCS) and this is very good news.
For many years the counseling was free until the demand for Reverse loans increased so much, that the grant money which was used to pay the non profits who were offering the counseling would run out. The result was that many seniors were unable to move forward with exploring whether or not a Reverse mortgage would be a viable option for them to use and they were unable to apply for the loan because completing counseling is required by the federal government to do so.
Ultimately, HUD approved the collection of $125 from the borrower to cover the counseling costs but in many cases, seniors couldn’t afford the fee and simply gave up considering using the FHA loan. The result is obvious…it hurt the senior community.
Now it seems that the “tide as turned” the other way and now the counseling is free once again. I believe that it’s very important to make the education process as simple as possible and I’m relieved that now a senior can investigate Reverse loans without having to pay for it. This had been an obstacle for some seniors and having it removed makes it so much easier for them to decide if the loan would make a positive difference in their lives or simply keep their status quo and not do anything.
I am providing a phone number that can be called to schedule a counseling appointment and also a link to their site. On the site, one can download a booklet that is published by AARP, called “Homemade Money”. I regularly provide it to potential clients when I first meet them, as the booklet is an easy read and does a very good presentation on Reverse loans.
800-510-0301
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