This next section of my article cautions the prospective borrower on how to locate information about Reverse loans and what to avoid.
The best option is to not “shop” around on the Internet or call any of those “800” phone numbers, but to meet in person an experienced and qualified Reverse Loan Consultant who will prepare a personalized proposal and assist you by providing various options to achieve a satisfactory solution for you.
If they are unwilling to meet with you personally, avoid them and do not provide any personal information, setting yourself up for relentless, endless and annoying sales calls.
It is very typical for companies to employ sales people who are not licensed or experienced in the mortgage industry to answer incoming calls from ads in a Call Center.
They will never personally meet with the potential borrower and will mail a loan application package to them without previously providing a proposal or explaining how the loan works and expect them to sign it correctly and return all the necessary documentation that is needed to process the loan.
This is unprofessional and lazy.
And HUD and FHA require a potential borrower to complete telephone counseling with a HUD certified counseling agency before they can apply for the mortgage.
And it is very, very confusing and overwhelming for the individual that was only seeking information about Reverse loans and is now bombarded with phone calls from sales people.
Be smart and ask your Bank, CPA, Realtor or Estate Planning attorney if they can refer you to a licensed and professional loan consultant.
And consider taking advantage of telephone counseling with a HUD approved agency who will help you to understand the loan without and potential for personal gain or commitment to apply for it.