Heard bad stuff about reverse mortgages? You don’t know who to trust? Did you know there were recent major changes to make them safer? Have you heard about the fees being less now? Learn the truth about Reverse Mortgages and set myths aside. When a Reverse Mortgage is done properly, it can be a major stress relief. Life isn’t over at retirement. Don’t let being “House Rich and Cash Poor” cause you problems.

You may have worked hard to get to the point of no house payments by retirement (or at least that was the goal). A Reverse Mortgage allows you to use your home’s equity to make ends meet while letting you stay in the home, and with no house payments to make.

The person you go to for your Reverse Mortgage matters a lot. Don’t just answer junk mail or call on a TV ad. Experience & Ethics really count more than ever. I encourage you to bring your adult children, financial advisor or attorney to my office and seminars. You need to find out not only the good parts of getting a Reverse Mortgage but also the pitfalls to avoid and the negative aspects of a Reverse Mortgage. Don’t fall for any predatory practices.

Reverse Mortgages can give you a monthly income that will last as long as either you or your spouse does, provide dollars to do home repairs, medical needs, pay off existing mortgages to zero, and more. Or you can combine all of these features in one Reverse Mortgage. Your income does not matter, nor does your credit rating. We even closed a reverse mortgage to a couple that were 11 months behind in their payments facing foreclosure. Now they can stay in their house, with no house payments.

Reverse Mortgages are not just for “hard luck” seniors in trouble though. They can provide a richer lifestyle and comfort for seniors in good shape allowing them to volunteer more, participate in the community or help with family. Sometimes a Reverse Mortgage is the difference between just existing or really living.

The house and any equity is yours if you sell it. You can still leave an estate to your heirs of the equity in the home. Your adult children can stay with you if they live with you to help.

Reverse Mortgages are available for older adults over age 62 that live in the home. The only factors that go in to calculating how a Reverse Mortgage would work in your situation are: Age, Any Mortgages or Liens Balance and Property Value. HUD has extensive information about Reverse Mortgages online at http://www.hud.gov/offices/hsg/sfh/hecm/hecmhome.cfm. Meeting with an experienced local loan officer that does Reverse Mortgages is the best way to really find out if it would work for you as you can ask questions, face to face. There are many local HUD approved counseling centers that offer information as well.

Call or make an appointment with Steve, and learn the truth.

Senior Center Seminar “Reverse Mortgages, Myths Exposed and Information”

(click image to view PowerPoint)

I do seminars at many local Senior Centers throughout the Portland area on a regular basis. Call me for the next scheduled presentation so you can attend. The above are the slides from my presentation. While looking at this is informative, you will get a much more complete understanding by coming to one of my seminars or coming in to the office in person.

10 Most Common Misconceptions about Reverse Mortgages

# 1 - “WHEN THE MONEY RUNS OUT, THE LENDER WILL TAKE OWNERSHIP OF MY HOME.”
Not True. You stay on title as the owner no matter the value or equity position in the future. Once the Reverse Mortgage is in place, the equity or value of your home going up or down does not matter to who has ownership of the house.

# 2 - “THE REVERSE MORTGAGE REQUIRES THAT I MAKE MONTHLY PAYMENTS.”
Not True. You never have to make payments on a Reverse Mortgage. In fact the reverse is true if you choose the monthly payment option of Tenure, you will receive a monthly check for as long as you or your spouse on the loan with you lasts.

# 3 - “MY CHILDREN WILL BE HELD RESPONSIBLE FOR REPAYMENT OF A REVERSE MORTGAGE.”
Not True. No matter how much you end up owing more than your house is worth, your heirs do not have to pay this. The only exception is if your heirs want to buy the home from your estate, they do need to pay off the Reverse Mortgage.

# 4 - “I NEED A CERTAIN LEVEL OF INCOME, CREDIT, OR HEALTH TO QUALIFY.”
Not True. None of that matters in getting approved. All we look at is Age, Mortgage balance if any, and property value.

# 5 - “MY HOME MUST BE CLEAR OF ANY MORTGAGE LIENS TO QUALIFY.”
Not True. I pay off existing mortgages, home equity lines of credit and other liens all the time as part of a Reverse Mortgage. So part of your Reverse Mortgage will be no more house payments on your existing loan.

# 6 - “ONCE I GET A REVERSE, THE BANK OWNS MY HOME.”
Not True. You maintain title and home ownership. As far as tile is concerned, a Reverse Mortgage is just that, a mortgage on your home like any other mortgage you’ve had now or in the past. Title does not change.

# 7 - “IF I DO A REVERSE MORTGAGE, I WON’T HAVE ANYTHING LEFT FOR MY KIDS TO INHERIT.”
Not True, mostly. If you end up staying in the home a real long time and use up the equity, there is no more equity to give to your heirs. Normally though, there will be equity left (a lot of equity many times) when you pass and your heirs will inherit it. Statistically it can take upwards of 20 years for you to use up your equity on the lump sum option and sometimes never use all of the equity on the monthly option. When you come in, I will show you an amortization schedule that shows how this works on the Reverse Mortgage option you choose.

# 8 - “IF MY SPOUSE PASSES AWAY, I MUST SELL OR MOVE OUT OF MY HOME.”
Not True, as long as you’re both on the Reverse Mortgage together. The Reverse Mortgage lasts until the last spouse on the mortgage passes.

# 9 - “A REVERSE MORTGAGE COSTS TOO MUCH AND I CAN’T AFFORD IT.”
Not True. If you need a Reverse Mortgage, you can’t afford not to get it. There are new low cost options as well. I will go over these cost options in detail with you. While upfront out of pocket costs are minimal, there are costs rolled in to the Reverse Mortgage. Nothings Free. The costs to get a Reverse Mortgage can be substantial less than the costs to sell your house. And if you sell, where do you live? What about when the money runs out? On the other hand, a Reverse Mortgage lasts as long as you do.

# 10 - “IF MY MORTGAGE BALANCE IS ABOVE THE VALUE OF MY HOME I HAVE TO PAY THE DIFFERENCE.”
Not True. You can stay in your home for as long as you last, no matter what the mortgage balance or value is. The only exception is if you want to pay off the Reverse Mortgage before you pass, but why would anyone do this if they owed more than the house was worth? Just stay in the house for as long as you last and don’t worry about the upside down equity position.

Approved Counseling

Once you decide you want a Reverse Mortgage, HUD requires you get a HUD approved counselor to provide you a certificate to proceed. Normally customers come in and see me first to get information & options so they can decide if they want to get a Reverse Mortgage, then go get or call for counseling. You can go to counseling first if you want to, then come see me. As soon as you get your certificate, bring the original to me right away so we can get going for you. Here is the list I hand out of HUD approved counselors you can use to get your certificate.

You can also go directly to HUD’s website, choose your state from the dropdown menu and search for local HUD approved counselors. My list has many 800 numbers of counselors you can call and get your certificate over the phone. Some of the local ones provide this service as well.

Testimonials

112030 SW King George Drive
King City, OR 64224

Mardi, le 31 mars ‘09

Dear Steve,

Right away I have to say « Thank you » far your help during the past two months. I do,
that is, say “Thanks”.

I know that I am no that I am not the only individual to come to you with this feeling of fear that I may not be doing the right thing in going for the reverse mortgage, but I do feel that I may have been one of the more scared – in fact I was terrified. Happily for me; you were quite the most calming and helpful person throughout our working time together.

First of all the deep shame that I had about borrowing on my equity was not brushed aside, but was slowly and gently explained to me that it was my right and my due. Next, the feeling that I could easily be “taken for a ride” (financially) was eliminated on being told (and shown) that the whole experience was supervised by the government and was watched over by various other agencies who had my interests at heart. A third thing that bothered me tremendously was that the money would run out before I anticipated. This problem was eliminated when you showed me the half a dozen various ways that we could approach the problem – that, and the fact that I have now a budgeted amount of money that will go on for the rest of my life (even if I live to be 125 years old) was the clincher for me.

Apart from the practical considerations I have to say another big “Thank you” for the personal interest you showed me. Never did you laugh at my fears, never did you put me down when I felt vulnerable and not once did you indicate that my worries should be put aside. In fact I enjoyed our office visits because I invariably came away feeling so much easier in my mind. All my questions were answered, I got some super advice (guidance), and best of all, I really valued the telephone calls from you which kept me up-to-date with the progress of the application.

No on can ever tell me that taking a reverse mortgage is not a stressful episode in one’s life, but you made it many times less troublesome, my emotional health has improved, my life has become easier, and now I feel set for the future. Thanks a million

Jeannot Whittle