Reverse Mortgage News

Seniors don't typically just rush out and get a reverse mortgage without thinking about it. They usually mull over all of their options for accessing cash, including the option of selling the home. However, a large percentage of those seniors find that the reverse mortgage is the best way to go because staying at home is what makes the most sense for them.

There are several reasons that staying at home into old age is best. Those reasons include:

- This is where the senior is going to be happiest. Becoming a burden in the home of family members or having to move to the unfamiliar setting of a nursing home may not allow the senior the same level of happiness.

- It may be the cheapest option. This varies depending on the value of the home in case of a sale but as a general rule aging adults, and the children who help support them, find that the most affordable option is to stay in the home.

- It can make the senior feel in control of his or her life into old age. Planning wisely for a financial situation that allows the senior to remain in the home can make him or her feel confident and in control of things despite changes related to aging.

Staying at home isn't always the best option for seniors but it often is which means the reverse mortgage is an important service in society today.

Question of the Day: Is it true that most seniors are happiest staying at home?

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The economy is bad, the housing economy is worse and many people think that this means that it's a really bad time to buy a home. There are certainly drawbacks to buying a home now. One is that it may be hard to qualify for a mortgage with good terms. Another is that there is no telling what's going to happen with the housing market in the next few years so you might not be able to turn a profit on selling the home. However, this doesn't actually mean that it's a bad idea to buy a home; in fact, some would argue that it's always a better idea to own than rent.

Owning a home gives you a number of benefits in comparison to renting. The most important one is that you gain an asset which allows you access money in the future. The reverse mortgage market is one reason why it may make sense to buy a home now despite changing home markets.

In planning for retirement, you may come to realize that the current state of the economy is making you unsure about your ability to afford life as an aging adult. Owning a home gives you the option of selling the home at the time of retirement or accessing an income from the home through the reverse mortgage. That's not going to be an option if you spent your whole life renting.

Question of the Day: Is the availability of a reverse mortgage loan a good reason to buy a house now?

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When we talk about reverse mortgage fraud, we are almost always talking about cases in which seniors have gotten swindled by a reverse mortgage company. A predatory lender approaches them and convinces them to sign a bad deal on a home which results in them losing either the home or a whole lot of money.

However, there are also reverse mortgage fraud problems which occur the other way around. In these cases, borrowers are fraudulent in their dealings with lenders and end up getting reverse mortgage money that they don't actually have the right to obtain.

The most common type of reverse mortgage fraud against lenders is when borrowers say that a home is their primary residence even though it's not. The reverse mortgage is only allowed to be used for a primary residence that is lived in by the couple. Some people try to take out reverse mortgages on second homes and investment properties. If they live and say that they live there most of the time, they're committing fraud.

Other types of reverse mortgage fraud against lenders include misrepresentation of age in order to be able to qualify for the loan, forgery of the land deed to the property, and forging payoffs of existing mortgages. Other fraud against lenders may impact the borrower as well such as when adult children forge power of attorney to get a reverse mortgage loan on the parents' home. All of these instances weaken the reverse mortgage market and make it harder for legitimate borrowers to get good loans.

Question of the Day: Is it more common for reverse mortgage fraud to be from a lender against a borrower or the other way around?

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The reverse mortgage is a really important loan that must be fully understood by the borrower before it can be really useful. In order to understand that loan (and to even be able to qualify for it), most people get reverse mortgage counseling. That counseling may be provided by government agencies or it may be offered through non-profit agencies. Those non-profits that offer this service rely on grants to be able to continue to provide assistance in this area. This is important because these groups often serve seniors who wouldn't necessarily seek out assistance from the larger community.

For example, a group called Catholic Charities Financial Counseling recently received a grant which allows seniors in Minnesota to gain helpful information for the purpose of avoiding home foreclosure. This information includes the option of taking out a reverse mortgage loan. These people may not seek out assistance from the MN state government but may be comfortable enough with a small non-profit to get assistance from them.

Society works because we are willing to help each other out when we need to. The government plays an important role in taking care of the elderly and providing information for them such as that related to the reverse mortgage loan. However, it takes other groups to make sure that everyone in society is obtaining this kind of help.

Question of the Day: Should non-profit groups receive additional funding to educate seniors about reverse mortgage loans?

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People who are interested in the idea of the reverse mortgage but who don't qualify for it for some reason (such as being too young) are increasingly turning to reverse mortgage alternatives that are designed to meet their needs. One of the most popular of those alternatives is the REX Reverse Mortgage which offers immediate cash to people for a percentage stake in the equity of the home. There is now a new company called Grander Financial which is offering something similar to the REX Reverse Mortgage.

Both of these loan options offer the same benefits and drawbacks to their customers. They offer the benefit of immediate cash based on the value of the home, something that forms the basis for what people interested in the reverse mortgage are seeking. They also take a percentage of the home equity at the time of the future sale of the home.

The stipulation with Grander Financial is that you can't sell your home for the first three years after you receive the loan. The hope behind the company's rule about this is that the housing market will be out of its slump by then. In that case, home values will be up and Grander will be able to make more money off of th equity of your home.

This type of loan isn't right for everyone but it's something that is worth considering if you can't qualify for a reverse mortgage and need some of the benefits that one would offer to you if you were able to qualify. This new company is a good sign for the industry because it means that there will be competition for the REX reverse mortgage which should result in better terms and conditions for consumers.

Question of the Day: Will we see more and more reverse mortgage alternatives that are similar to the REX reverse mortgage or is this just a temporary trend?

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We're about a third of the way into June and that seems the perfect time to remind everyone that June is National Homeownership Month. People who get a reverse mortgage loan frequently do so for the purpose of being able to remain in their homes after retirement despite rising costs of living. This is because owning a home is the American Dream and people want to be able to keep living that dream as they age. National Homeownership Month celebrates their right to do that.

National Homeownership Month isn't specifically designed to honor those retirees who are homeowners. Instead, it is intended to reflect the commitment of this country to providing equal access to housing for all people. When it was introduced by the president in 2002, the focus was on increasing minority home ownership in this country. However, it is also important to celebrate the aging adults who can keep their homes because of the reverse mortgage and who would otherwise lose ownership of their homes due to the high costs of keeping a home after retirement.

Question of the Day: What can be done to celebrate National Homeownership Month?

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A recent news article about the reverse mortgage loan offers an important reminder about who you should turn to for additional information about reverse mortgages. The article itself is a fairly straightforward review of what a reverse mortgage is, something that is only useful to those people who are not clear on the purpose and process of the reverse mortgage loan. However the final line of the article tells readers where to look for additional information and serves to confirm that there are good sources for this kind of information and there are ones that are not so good.

The first place that it's recommended that you go for additional information is a financial advisor. The article doesn't specify why you would want to see this type of professional but it's accurate in making this recommendation. That's because the financial advisor is a third party individual who will be able to provide you with unbiased information about what the reverse mortgage can do for you and what any drawbacks will be of getting the reverse mortgage loan.

The other place that is recommended is AARP. This organization serves to provide information of all kinds to seniors and that includes information about the reverse mortgage loan. This is another great place to get information because it's unbiased and it comes from a source that is used to offering sage advice to seniors.

Question of the Day: Are financial advisors and AARP really the two best resources for reverse mortgage information?

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One of the most important things that is happening right now in the world of reverse mortgages is that professionals in a variety of different industries are coming together to make sure that reverse mortgages are safe for the seniors that are interested in using them. The FBI has been cracking down on reverse mortgage fraud. Senior groups are working to make sure that people interested in the reverse mortgage really understand what it's about. And lawyers have gotten in on the fight by learning about the ways in which they can assist seniors who have gotten involved in bad reverse mortgage scams.

One group of lawyers is about to get a better education in their role this month when a reverse mortgage specialist speaks at the annual State Bar Association meeting in Maine. This professional will relay information and concerns about reverse mortgage lending to the professionals working in Maine's legal field so that these professionals can better assist the people who come to them for help with reverse mortgage issues. This is one example of how professionals from different industries can come together to help improve reverse mortgage lending.

Question of the Day: Which other fields should be working to prevent problems with reverse mortgages and increase their viability as an economic tool for seniors?

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If you have a dad who is over the age of 62 and who is dealing with financial troubles, you might want to help him out by recommending that he look into the option of getting a reverse mortgage for his home. In fact, setting up an appointment for Dad to speak with a financial advisor about this could be a great Father's Day gift which could really benefit him in the long run.

Of course, there are some things to consider before making this kind of an appointment for Dad. First, think honestly about whether or not he'll like this gift. Some people are afraid of the reverse mortgage and may not want the decision to learn more about it to be made for them. Second, consider who is the best person to give Dad this advice; is there a senior center that has financial advisors or should you go to someone specializing in reverse mortgage loan information?

Finally, make sure that you let Dad know that this is a gift that you're giving to him just to think about. You don't want to pressure him into feeling like he has to get a reverse mortgage because you think he should. Make sure that he's aware that you want the final choice to be up to him and that you just wanted to give him as much information as possible.

Question of the Day: Is a reverse mortgage informational appointment a good gift for Dad on Father's Day?

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Groups across the nation are working hard to make reverse mortgage loans safer for the seniors who need them. Lawyers, legislators and consumer advocacy groups are pushing for changes in reverse mortgage monitoring that will make it more difficult for predatory lenders to take advantage of seniors and this will make it more likely that seniors can get good loans when turning to reverse mortgage lending as a solution to their financial problems. However, not all of the changes actually make things better for seniors all around.

For example, Washington State has just passed new laws that "increase lender licensing requirements and scrutinize all negative amortization loans". It is believed by many that this has a negative impact on the reverse mortgage market in this area. Basically, it will be harder for lenders to qualify to offer reverse mortgage loans because of the issues surrounding the new negative ammortization loan rules. Lenders who had previously been approved to offer these loans now may not qualify wihch reduces the loan options for seniors in the region.

Learn more about this complex issue here.

Question of the Day: Should we strengthen reverse mortgage lending requirements to the point where it may be difficult for seniors to get these loans if we believe that the tighter requirements will keep seniors safe from reverse mortgage harm?

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It's great that you can access moeny through your reverse mortgage to assist you with your financial isssues as you age. This money can be used to pay your bills, keep you in your home and even allow you to have some modicum of luxury in your life. However, the reverse mortgage shouldn't be your only plan for paying for things as you get older.

Those people who are nearing retirement but aren't quite there yet should think seriously about ways that they can increase their retirement income without having to rely solely on the reverse mortgage. Smart investing, aggressive saving and some good budgeting can go a long way towards helping you to get some money in the bank so that the home equity from your reverse home mortgage loan isn't the only thing that you have to support you.

The more options that you have for income after retirement, the more you're going to be able to do with your life in your older years. You'll have fewer worries because you'll have more opportunities to take advantage of the financial assistance that can help you live a full life as you age. Just take a look at this inspirational story of one couple that's debt-free after retirement to motivate you to consider all of your money options.

Question of the Day: What options do you have for retirement income other than the reverse home mortgage loan?

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The reverse mortgage market in the United States is huge and there has been a big push in recent years to make sure that the seniors this market targets are kept safe from predatory lending practices. As a result, most seniors in the U.S. are aware of the fact that they need to seek out financial advice about getting a reverse mortgage before determining for certain that this is the right financial choice for them. Seniors in Australia are now being asked to take a lesson from their U.S. counterparts in this area.

Australia is one of the leading areas of the world where there has been a big boom in reverse mortgage lending. The number of both lenders and borrowers is rising rapidly and this has created some of the same concerns that existed not so long ago for borrowers in the U.S. Australian borrowers are being urged to make sure that they speak with an unbiased financial advisor in order to gain complete understanding of what the reverse mortgage is all about before moving forward with this type of loan.

Question of the Day: In what part of the world are we likely to see the next big boom in reverse mortgage lending?

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It wasn't that long ago that the very first reverse mortgage alternative, the REX Agreement, was launched. Despite its youth, this method of home equity lending has spawned several alternatives that people are currently taking very seriously as they look at the methods of adding income to their lives. There are variations between these different programs but they all offer the chance to get money now and pay it back later in the form of an equity stake in the home.

People who have used the REX Agreement and other alternative reverse mortgage loans generally seem happy with the results. However, only time is going to tell whether or not they're pleased in the long run. It's easy to be happy when you're still living in the home and using the money from it but it may be a lot less happy when it comes time to sell the home and the seller has to fork over a huge percentage of the price to the lender.

Learn more about this issue here.

Question of the Day: Are we going to see more and more reverse mortgage alternatives or have most of them already hit the market?

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The city of Philadelphia is one example of a city that is getting very serious about cracking down on people who have failed to pay their real estate taxes. In a time when home owner's are really struggling just to make ends meet, paying their property taxes isn't easy. A lot of people in Philly have become delinquent on these taxes and the city is saying that they need to either pay the money or lose the house.

The reverse mortgage is being recommended as one method of finding the financing to pay for proerty taxes. If someone over the age of 62 has home equity, it is possible to tap into that home equity to get a lump sum payment that will cover the cost of the property taxes.

Unfortunately, many of the low-income home owners in Philadelphia don't seem to be aware of this option. Some are suggesting that the city shoudl take cues from other areas that have created a system of mediation between the city and homeowners who are delinquent with their property taxes. This type of mediation typically leads to increased awareness of options for the home owner which could lead to a better understanding of the use of the reverse mortgage loan for paying property taxes.

The city doesn't currently appear to be particularly interested in this option but senior advocates are hoping that the situation may change. Learn more about this from the Philadelphia Inquirer.

Question of the Day: Should the city of Philadelphia make a push to encourage reverse mortgage lending for seniors who are delinquent on paying property taxes?

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People who are interested in a reverse mortgage loan will have to work with a series of professionals in order to make sure that they know what this type of loan is all about. These people should know that there's one great professional out there who is truly on the side of the senior in dealing with any sort of issues related to real estate. That professional is the senior real estate specialist.

The senior real estate specialist is someone who has stated a commitment to understanding and assisting with the unique real estate needs that apply specifically to seniors in today's society. These people get ongoing education in issues like the reverse mortgage loan in order to be able to provide information to the people who will come to them for help.

These realtors are specifically interested in assisting elderly people (over the age of fifty) who want to purchase a home but they can typically answer all questions related to senior real estate. They're on the side of the home owner or home buyer so they can be a really great resource.

Question of the Day: Should you work with a senior real estate specialist?

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For seniors who want to stay in their homes after retirement but who are having trouble financing that option, the reverse mortgage can be a terrific solution. However, the reverse mortgage is a financial move which is something that always requires weighing the pros and cons before moving forward.

The reverse mortgage offers financial benefits but they also come at a financial cost. A smart retiree will look at these carefully before proceeding with the reverse mortgage loan. This review is aided by reverse mortgage counseling which is required before getting the loan.

However it's also something that should be done by the retiree on his own or with the help of a financial advisor in order to make sure that the decision to get the reverse mortgage is the right one. This will also assist the retiree in finding the best reverse mortgage loan that's available.

For those people who are interested in weighing the pros and cons of the reverse mortgage, there is a good overview of the benefits and drawbacks of these loans available here.

Question of the Day: What are the pros and cons of getting a reverse mortgage loan?

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The reverse home mortgage loan may be obtained by seniors over the age of 62 whether they are single or married. However, those people who are married and who seek to get a reverse mortgage loan for the joint home need to be aware of some of the issues that are unique to this situation as compared to the individual who is getting a reverse mortgage alone.

The main catch is that the reverse mortgage loan requires that both parties by 62 years of age or older if they are going to qualify for the reverse home mortgage. Most couples opt to wait on the reverse mortgage until both partners reach this age. However, some couples choose to remove the younger person's name from the title of the home so that the older person in the couple can qualify for the reverse mortgage alone.

This choice does allow for the reverse mortgage to happen but it also creates some problems. The main one is that the younger partner then loses rights to the house. This means that if the person who obtained the reverse mortgage passes away or moves from the home, the younger partner will need to pay what's owed on the reverse mortgage or move out of the home. These are the things that you need to be aware of and ask questions about as you go to get a reverse mortgage loan.

Question of the Day: Should a couple with a wide gap in age remove the younger person's name from the home so that the older person can qualify for a reverse mortgage loan?

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People who are going to get a reverse mortgage loan need to make sure that the professional they are working with to obtain the loan is someone who is trained specifically in reverse mortgage lending. It is increasingly common for people to specialize in reverse mortgage loans but that doesn't mean that every lender has this kind of training. You need to look specifically for the ones that do have this sort of financial education in order to make sure that you get the best loan possible.

Reverse mortgage lending has grown significantly in the past few years. This has created a need for banks to hire more people to do this sort of lending. Not all of these people have been properly trained in the unique needs of the borrower who is seeking to get a reverse home mortgage. Training is being provided for these people but they haven't all gotten it yet. You want to choose a lender who has it already. Better yet, choose a lender who has several years of experience in reverse mortgage lending.

Question of the Day: How can you determine whether or not a reverse mortgage lender is experienced in the reverse mortgage loan?

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In the past, many different media reports have indicated that the reverse mortgage loan is growing in popularity in India. A new media report suggests the opposite. Which is actually the case?

Previous media reports indicate that the people living in India seek out the reverse mortgage for the same reasons that people in the U.S. want this type of loan. They seek financial security after retirement and want to remain in their homes despite a drop in income.

The new media report indicates that the things which hold some people back from getting a reverse mortgage in the U.S. are causing some people in India to have the same wariness. These factors include a desire to pass the house on to children in the future, a high interest rate on these loans and a general lack of awareness that the reverse mortgage is an option.

What is likely the case is that some parts of India are seeing widespread interest in the reverse mortgage loan due to increased education and awareness about loan options in those parts of the country. In other parts of India, the information may not be so widespread, as is the case in some areas of the United States.

Question of the Day: Are reverse mortgage loans rising in India?

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The state of Rhode Island is doing its part to make reverse mortgage loans safer for seniors. The governor has just signed a new law which strengthens the requirements for reverse mortgage lenders in order to make sure that the people who are giving out reverse home mortgage loans are people who are trained to do so and who are providing legitimate loans.

The new reverse mortgage law specifically requires that lenders must disclose all of the fees that are included in the loan. The reverse mortgage loan comes with a high amount of fees in comparison with traditional mortgages, something that not all seniors are aware of.

Some seniors would opt not to get the loan if they realized that they were paying so much in fees (although many would still get the loan) so it became necessary to require this type of disclosure in order to allow seniors interested in reverse mortgage loans to make fully informed decisions about the reverse home mortgage.

Question of the Day: Will a large percentage of seniors refuse reverse mortgage loans after full disclosure of fees is made?

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