Reverse Mortgages and Adult Protective Services

In the previous post, I started to discuss the Adult Protective Services in Ventura county, CA. and being a guest speaker at their staff meeting.   In closing that post, I mentioned that in the event that a senior is in the process of a foreclosure, a Reverse mortgage can be used to pay off the existing loan and cancel the foreclosure proceeding and save the home.

It is extremely important for the public and professionals to know of this option, given the current foreclosure crisis at this time.   If a senior can’t make their mortgage payment, they have the option of doing the Reverse mortgage, paying off their loan and being able to remain in their home.

About 15 people were at this discussion and given the significance of the day, I felt that it was very important to recognize their commitment to prevent and help seniors and dependent adults from becoming victims of individual terrorism.   I congratulated them on their work and compassion and how important their mission is to help the helpless.

As a Reverse loan consultant and representing the Reverse Mortgage industry, I am quite concerned about some individuals who may financially abuse a senior by selling them a Reverse Mortgage and then use the funds from it to purchase unnecessary insurance products or annuities with deferred payments and high surrender fees.

This has occured and I have come across two situations where a senior had done a Reverse mortgage and then purchased this type of an annuity.   Purchasing any type of insurance product is not a condition to completing a Reverse mortgage and it is very unfortunate when something like this happens.

A Reverse mortgage is in of itself, a built-in annuity without any prepayment penalties or income taxes and it allows the borrower the ability to access the funds anytime whenever they should need  additional money.   To use the funds to purchase an annuity simply does not make any sense.

As a Board member of the Ventura County Adult Abuse Prevention Council (VCAAPC) , I have learned quite a bit  more about abuse in general and the unfortunate ways that it can occur.   Sometimes it is a family member who is the only caregiver to their parent and is overwhelmed by the responsibility and not able to handle the stress or it’s a “trusted” advisor.

And at this time, there are approximately 20 million adult children of seniors throughout the United States who find themselves in this situation, causing enormous emotional stress, physical problems and financial loss.

Funds from a Reverse Mortgage could eliminate this problem and bring relief to the senior and the family members.

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Reverse Loans & Senior Abuse

On September 11th. last week, I was the guest speaker at Adult Protective Services, a division of the Human Services Agency in the County of Ventura, CA.   Because I am a Reverse loan consultant and I meet with seniors regularly, I have made it a point to become better informed as to the issue of senior abuse.


The Adult Protective Services (APS) provides information and protection not only for the senior community but also for children and dependent adults that may have physical or mental limitations and could experience financial or physical abuse.  Their services are free of charge to the community and are mandated by law.


Originally I was to speak only about 30 minutes on Reverse loans but there were so many questions that the time ran over and I still wasn’t able to cover all of the important information and benefits that can be gained from using a Reverse loan and how it can have a positive impact on a senior’s quality of life.


Many of the questions concerned loan amounts, interest rates, costs and how the money could be used, MediCal and the heirs.   I answered these questions as throughly as possible but there were more areas that we didn’t get to.


One of those being the issues of seniors losing their homes through foreclosures.   It’s very important to know that if they are in the process of a foreclosure, a Reverse loan can be used to pay off the existing mortgage debt and save the homeowner from losing their home.


I will continue this topic in the next post.

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Memory Care for Seniors

I’m a member of a group called, “MAPS” an acronym for Marketing & Admissions Professionals for Seniors.  We had a breakfast meeting yesterday at a residential care facility called Seasons at Northridge.


They offer assisted living and memory care services in beautiful surroundings and have many services to offer the senior resident and their families.   Assuring them that their parent is being well cared for by a highly trained and professional staff.


If you would like more information, contact Regina Wyman at 818-886-5181.   Their senior residentail facility is in the Los Angeles area and they do have a website.


The speaker at our meeting was a volunteer from AARP.   He explained to us how AARP was originally started by a retired school principal here in California fifty years ago.   Without going into the details, I was really surprised by this as I didn’t know that!


Herb discussed the development of AARP over the last fifty years and all of the programs that are now offered to their members.   I’m sure that some people are aware of them and there are too many of them for me to list, but the selection is huge.   I would suggest going to their website for information.


In my previous post regarding the Veterans HealthFair, I mentioned John who was a ‘Nam Vet and in a helicopter unit.   I just now found my notes that I wrote down about him, along with the website that talks about his unit.   He was a door gunner in the 116th., Aviation Co. (As Hel).


Gosh, I hope that I have the right.   Here’s the info:

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Veterans’ Health Fair

Last Saturday the 23rd, I participated in an event that was offered by the County of Ventura and the Veterans Adminstration for the third year in a row.   I have been at each one and I really love doing this event and meeting the Veterans who represent the different generations that have defended our country in the last several wars.


It’s always a delightful, insightful and funfilled afternoon talking and visiting with them and hearing their stories when they are willing to share them with you.   John Castaneda was one that I spoke to and is a Viet Nam Veteran and he was a tail gunner in a Helicopter unit.   Unfortunately, I misplaced my notes where I wrote down a web page address regarding his unit.   Otherwise I would post it here, but I will be talking with him John Castaneda

again regarding his sister and I’ll get that information, then.

When I have it, I will publish here.  And he’s also written a manuscript about his experiences in “Nam” and would like some advice about how he can have it published or released in some fashion to the public.   Anyone out there interested in helping?   Let me know! 


Another gentleman that I met was Jesse who is 93 years old and a Veteran of WWII.   I’m not certain, but I believe that he was with his granddaughter and he really loved the fact that I asked to take his picture.   What an amazing guy.   I sure wish that I had more information on him to share in this blog.Jesse


But that’s all that I have.   I feel that these guys are walking history and it’s really important that we talk with them and hear there stories while they are still with us. 


I am involved with many community events as a Reverse loan consultant and I have noted recently, that more people are open to the possibility of using a Reverse loan.   It seems that some of the fear and ignorance regarding it, are slowly disappearing….but very slowly.


Instead of the public avoiding eye contact with me and generally staying FAR AWAY from my disply table, they are actually approaching me with an open mind and many questions.   Such as John.   He’s quite concerned about his sister’s situation, since she does not have enough income each month to make her mortgage payment and the rest of her bills and he’s worried that she will lose her home in a foreclosure.


I gave him some figures showing how much she could receive if she used a Reverse loan, but he said she’s very stubborn and afraid and it will be difficult for him to talk to her about it.   Hopefully that won’t happen and maybe I can meet with both of them in the future and personally give her the information.  He’s stressed about it and wishes she would be more open before it’s too late to do anything.


In closing, here’s a photo of me and George J. Compton, Col. USA (Ret.).   George is the County Veteran Services Officer and he’s very passionate about his “Vets”.   He’s a decorated Viet Nam Veteran; the Purple Heart AND he was in charge of the invasion of Panama a number of years ago, booting out Noriega!


He is the “go-to” guy for any Veteran or a family member that needs to know more about their benefits, as there are many.   And he also writes a column in The Ventura County Star.   Anyone in Ventura can reach him at: 805-385-6366Lorraine & George

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Reverse Loans & the Government

A common question that comes up, is the reverse loan offered by the government?   And the answer is yes for a certain type, while there are some other programs that are available for larger loan amounts and they are called proprietary reverse mortgages.


The most popular program is the one offered by FHA/HUD, federal agencies and it’s called the “Home Equity Conversion Mortgage, otherwise know as “HECM”.   A reverse loan is highly regulated by federal and state laws and are considered to be the safest loan in the lending industry.


In 1989 HUD selected 50 lenders that would  offer the first FHA reverse loans. Previously they were being done but were a terrible option for a senior.   Typically there was equity sharing with the lender and sometimes the borrower was required to purchase an annuity.  Due to these earlier loans and how awful they were, the reputation of the loan became tainted and it’s been a bit difficult to overcome the old persona.


But once the federal government stepped in and developed regulations to protect the senior, they have become an excellent option for additional funds for living expenses or any other purpose.


Their popularity has increased substantially in the last three years as seniors have recognized the benefits from having the loan and the peace of mind knowing they money at hand in the event of an emergency or for monthly expenses and especially for prescription and medical costs.


Counseling by a HUD approved agency is required of all applicants and with the additional overview of the federal government, a reverse loan is an excellent and safe option for a senior to have access to their equity and know that their funds are insured, completely safe and protected.

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