Author Box
Articles Categories
All Categories
Articles Resources

Are Seniors Getting the Right Reverse Mortgage Information?

February 20, 2012 | Comments: 0 | Views: 103

Lately, reverse mortgages have been getting some negative media attention. This is because, as of last year, around 30,000 of these loans have fallen into default. This means that around 5% of borrowers are at risk of losing their homes unless they can get their loans back into good standing. While the number of actual foreclosures is unknown--and likely very small--, this threat is scaring some seniors away from these loans.

Are Seniors Suffering Due to a Lack of Reverse Mortgage Information?

In the past several years, there has been a rise in reverse mortgage defaults. While these loans eliminate seniors' mortgage payments, borrowers are obligated to keep up with their insurance payments and property taxes. Seniors must also maintain the structural integrity of their home and keep the home from falling into disrepair. However, it is usually taxes and insurance payments that get seniors into the most trouble. If these expenses go unpaid, the Federal Housing Administration (FHA) will label the loan as being in "technical" default. If the loan is not brought out of default, lenders have the right to foreclose on the home and eventually evict the homeowners.

There are two possible reasons for seniors defaulting on their loans. Either they cannot afford to make their insurance and tax payments, or seniors are not getting the information they need. In many cases, it is probably a combination of the two reasons. Perhaps seniors are accepting loans that they cannot realistically afford to maintain. Either that, or seniors are getting loans without fully understanding the importance of keeping up with their insurance and property taxes. In the haste to get a loan, it is clear that some seniors are not getting the necessary reverse mortgage information.

What Reverse Mortgage Information Do Seniors Need to Know Before Getting a Loan?

Before pursuing a loan, seniors should do their research. Reverse mortgage information is widely available through several government agencies including the U.S. Department of Housing and Urban Development (HUD) and FHA. Many senior protection groups, like the National Council on Aging and the Administration on Aging, also work hard to provide seniors with unbiased reverse mortgage information. To make an informed borrowing decision, seniors should begin educating themselves before even beginning the loan process.

Lenders are another great source of reverse mortgage information. Before seniors really begin considering a loan, they need to determine whether they can afford to keep up with the necessary expenses. When speaking with their lender, seniors should discuss whether their loan proceeds will enable them to pay their property taxes and homeowners insurance.

To further protect seniors, borrowers are also required to complete housing counseling in order to qualify for a loan. During this session, counselors will discuss the senior's options, the loan process and what is expected of them after closing the loan. The fact is there is no shortage of information available. Seniors simply need to take their time evaluating their finances and educating themselves before making such a huge financial commitment.

Abby enjoys learning about new and innovative financial products that are designed to make people's lives easier. In her free time, she enjoys spending time with her friends and family. To see how much you can receive, visit this reverse mortgage calculator now!

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Reverse Mortgage


Reverse Mortgage Calculator

















The documents are inevitable to assess your age, income, employment and residence. For the loan to be petitioned from the bank, you need the right procedure of application.The documents are

By: Simon Liva l Real Estate > Buying l November 20, 2012 lViews: 257

The main reason why people tend to be apprehensive about moving homes is that it entails packing everything in the home, transporting it and then unpacking it in the new home. The entire process of

By: Ringo Star l Real Estate > Moving Relocating l October 27, 2012 lViews: 210

There are a number of benefits to owning a second home. Buying to let is a long term investment. The property will usually accumulate value over time and also can generate rent on a shorter term

By: Alan Trotter l Real Estate > Investing in Real Estate l October 19, 2012 lViews: 240

Building a home, especially your first one, can be an incredibly daunting task - there are a number of factors, including budget and planning, that must be taken into account before any sort of

By: John K. Taylor l Real Estate > Building a Home l July 10, 2012 lViews: 333

When you're ready to sell your house, the first thing you'll probably do is find a real estate agent to help you through the process. It can be so inviting to seek out the discount Realtors who offer

By: W Josh Anderson l Real Estate > Selling l July 10, 2012 lViews: 262

You see the signs everywhere, especially in a strong economy: For Sale By Owner. For some reason, many people believe they'll do a better job of selling their homes without the assistance of a real

By: W Josh Anderson l Real Estate > Selling l July 10, 2012 lViews: 240

This is the question many property owners might have when they are thinking about re-financing their house. The fact is that the answer for this question is a rather complicated one and the correct

By: Demetrius Weatherspoonl Real Estate > Mortgage Refinancel July 05, 2012 lViews: 177

Getting rejected for a mortgage loan is upsetting especially if you are borrowing it for something important like a home loan. Therefore, before applying for one, make sure that you are qualified for

By: Dawie Besterl Real Estate > Mortgage Refinancel July 05, 2012 lViews: 191

For years, underwater borrowers who remained current on their mortgages were forgotten and forsaken. At last, they have options. Here are the details.

By: Bill Irelandl Real Estate > Mortgage Refinancel July 05, 2012 lViews: 173

  Such is the strength of the Brazilian mortgage market at present; a number of the biggest banks in Brazil and across the globe are locked in intense competition in order to gain a bigger share of

By: Waseem Saddiquel Real Estate > Mortgage Refinancel July 03, 2012 lViews: 199

A mortgage originator (also known as "loan officer") is an employee of the mortgage lender responsible for processing mortgage transactions to lenders and borrowers. The originator is also

By: Dawie Besterl Real Estate > Mortgage Refinancel July 02, 2012 lViews: 176

Mortgage refinance loans with bad credit exist. However, before moving forward in your search, understand the options available and where you fit into the equation.

By: Donna N Hammondl Real Estate > Mortgage Refinancel July 02, 2012 lViews: 157

When most seniors ask, "How does a reverse mortgage work?" they are really asking how to apply and qualify for a loan. For many seniors, qualifying is the simple part. To qualify for a

By: Abby Reynoldsl Finance > Loansl April 21, 2012 lViews: 219

Home Equity Conversion Mortgages (HECMs) remain popular with seniors interested in making the most of their home equity during retirement. While many of the requirements necessary to qualify for an

By: Abby Reynoldsl Finance > Loansl April 21, 2012 lViews: 179

While some seniors plan on using a reverse mortgage as a retirement tool, many others are still on the fence. By now, many consumers know that reverse mortgages are loans that allow seniors over 62

By: Abby Reynoldsl Finance > Home Equity Loansl April 21, 2012 lViews: 173

A reverse mortgage calculator is a tool used to estimate the amount of money an individual might be able to receive through a reverse mortgage. To use a reverse mortgage calculator, seniors simply

By: Abby Reynoldsl Finance > Home Equity Loansl February 20, 2012 lViews: 133