One of the best resources for accurate information about Reverse mortgages is through a HUD approved counseling agency.
As a matter of fact, no one can apply for the loan without completing a counseling session which is typically done over the telephone in about one hour.
Once it’s completed the counselor will send a HUD Counseling Certificate to the individual(s) for them to keep and use if they decide to apply for the loan.
Here is a copy of an article that was published a couple of months ago with more details about this important resource.
“From an educational standpoint, Home Equity Conversion Mortgage (HECM) counselors are the first line of defense in the ongoing struggle to dispel the most common reverse mortgage myths and misconceptions.
Mandatory HECM counseling provides seniors with the necessary exposure to make an informed decision about getting a reverse mortgage. Like originators, the job of a HECM counselor is also rooted in education as they help prospective borrowers more clearly understand the inner workings of reverse mortgages.
Despite this dual effort on the educational front, and the wide variety of positive press from the mainstream media lately, several reverse mortgage illusions have yet to evaporate into the ether.
Borrowers, in fact, still own their homes
One of the most common misconceptions of reverse mortgages is that borrowers automatically relinquish ownership of their homes once they obtain a HECM.
Perhaps the result of negative media representation in the past, the lingering effect of this myth has obscured the truth about reverse mortgages among the general public. The reality is often a pleasant revelation for seniors once they undergo HECM counseling.
“Seniors are under this misconception that they don’t own the home anymore—the lender does,” said Sherry Tetreault, a Tenn.-based certified credit counselor with ClearPoint Credit Counseling.”
Jason Oliva/Reverse Mortgage Daily
Due to the fact that this article is quite long, I plan on sharing it in two additional posts here on my blog.
If anyone would like a list of some HUD approved counseling agencies, please contact me as there are several different ones to chose from, but the counseling process is uniform.