Why Is Counseling So Important For A Reverse Mortgage?

Getting a reverse mortgage is no simple task. There are things you need to know that could possibly affect your financial future. See why counseling is an important first step.

The retirement years can often be a time of high stress when it comes to finances. Many times, seniors must live on a fraction of their working income, while the cost of living keeps rising. The reverse mortgage was created for those who are 62 years or older who want to use the equity in their homes for extra income. There are benefits and drawbacks to taking out a reverse mortgage, and seeking qualified counseling before you take the plunge is important.

Counseling As A Means Of Education

Before making a life altering decision we often seek the advice of our family, friends and other business professionals who can help us make informed choices. We educate ourselves by reading books, brochures, and other written information that may be available on the subject or product. A reverse mortgage is no different. HUD or The Department of Housing and Urban Development has made it mandatory that all seniors who wish to take out a reverse mortgage undergo counseling with a qualified HECM (Home Equity Conversion Mortgage) counselor before the reverse mortgage will be issued. You also must obtain a certificate from the counselor as proof that you have undergone this process before you can even apply for the reverse mortgage.

Gaining Perspective

It is important to get the right information into your hands before you take out a reverse mortgage. Mandatory counseling ensures that you are given proper information so that you are less likely to become a victim of fraudulent activity, or that you are not being coerced by a family member into doing something you don’t want to do. A qualified counselor will take you by the hand and walk you through the entire reverse mortgage process and help you to understand the pros and cons. Make sure that you contact your local HUD office to get a list of qualified counselors and mortgage lenders.

Related posts:

1. Why Is Counseling Important For Reverse Mortgages?
2. What Is A Reverse Mortgage Counseling Certificate?
3. Why Does the Government Insist I Get Reverse Mortgage Counseling?
4. Should I Pay for Reverse Mortgage Counseling?
5. Reverse Mortgage Important Facts – Do You Know Them?

This entry was posted on Sunday, March 7th, 2010 at 6:27 pm and is filed under reverse mortgage. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.