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.


(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.

# 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.

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.
National
Foundation for Debt Management
http://www.nfdm.org/Reversemortgage.html
14104 58th N
Clearwater, FL 33760
866-395-5769 |
National Foundation for
Credit Counseling
(800) 388-2227 |
Open Door Counseling
Center
34420 SW Tualatin Valley Hwy
Hillsboro, Oregon 97123-5470
(503) 640-6689 FAX (503) 640-9374
(866) 640-6689 |
Money Management International
(866) 889-9347 |
Community Housing Resource
Center
2700 NE Andresen Road, Suite D3
Vancouver, WA 98661
(360) 690-4496 FAX (360) 694-6665 |
CCCS of Atlanta
(800) 251-2227 |
CCCS of Southern Oregon
820 Crater Lake Ave, Suite 202
Medford, OR 97504
(541) 779-2273 FAX (541) 779-6412
(800) 888-7182 |
AARP, American Association
of retired Persons
www.aarp.org
(888) 687-2277 |
CCCS of Mid-Oregon
1010 NW 14th St
Bend, OR 97701
(888) 845-5669
(800) 308-2227 |
National Council on Aging
www.ncoa.org
(202) 479-1200
541-322-5610 |
CCCS of the Tri-Cities
240 E. Gladys Susite 3
Hermiston, OR 97838
(541) 667-8738 FAX (541) 667-8740 |
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