For your protection: Reverse Mortgage counseling

Reverse Mortgages are a safe and excellent option for many senior homeowners. One of the many protections built into the program is the requirement that all prospective borrowers undergo counseling with a trained Reverse Mortgage counselor.

The counselor is not associated with the lender, but works for an objective financial counseling or government agency and must be approved by HUD. (See information below to find a Reverse Mortgage counselor.) The fee varies depending on where you live, but is usually nominal.

During the session, which can be done in person or over the phone depending upon your needs and access, some of the topics your Reverse Mortgage counselor will review include:

- How your loan will be paid to you (lump sum, line of credit, monthly income)
- Terms of repayment once the loan becomes due
- Your continuing responsibilities as homeowner to pay property taxes, insurance, and maintaining your property
- How the Reverse Mortgage will affect your financial situation long term
- Any questions you may have about your loan

Though it may seem like another obstacle to getting the money you need, the counseling is designed to ensure you know all of your options and are making the best decision. When the session is complete, your counselor should provide you with a signed certificate that must also be signed by you, and given to your loan officer to submit as part of your application.

Do you need answers about Reverse Mortgages before even start the loan process? Contact me at 510-610-5223 or send me an e-mail at ed.ramos@fpfmail.com. I'm happy to help!

HUD-Approved Reverse Mortgage Counselors

Visit: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/hecm/hecmlist

Or call toll-free: (800) 569-4287