Reverse mortgage counseling is required for anyone who wishes to partake in the reverse mortgage program. This law has been enacted to protect the consumer and prevent unfair lending practices. A reverse mortgage is not like a regular mortgage. There are many different laws regarding the usage of the program. Consumers must be fully aware of all the requirements and outcomes of using a reverse mortgage program.
What If I Choose Not To Go To Counseling Before I Get My Reverse Mortgage
You cannot avoid credit counseling prior to receiving a reverse mortgage. It is required by law that all people wishing to use the reverse mortgage program have counseling prior to the loan being processed. In actuality this is a good law, despite any inconvenience you may have. The counseling session is designed to provide the consumer all the knowledge they need to make the right financial decision. A reverse mortgage is different than a regular mortgage. This type of loan will, eventually, turn ownership of your home to the bank and not your heirs. Consumers must be aware of this, and other, issues concerning this type of loan.
How Long Does A Counseling Session Last
A reverse mortgage counseling session can last anywhere from 1 – 3 hours. This will depend on how the counseling is presented to the borrower and the amount of interaction required. Make sure, regardless of time constraints, that you understand the entire reverse mortgage process. This counseling session is designed to fully educate the borrower on the program. It is not a waste of time. Many consumers find that the counseling session helps them make a better choice for their own financial situation, even if that means not getting a reverse mortgage.
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