||July 13, 2006|
Reverse Mortgages . . .
with Laura Strickler
Last column, I explained about the Expected Principal Limit Disclosure, which protects the amount of money you receive through a reverse mortgage in a rising interest rate environment. This is one of the many protections that FHA and Fannie Mae put in place for the senior homeowner.
Laura Strickler -
Your Reverse Mortgage Specialist
One of the other protections is the requirement for counseling by a HUD approved reverse mortgage counselor. The counselors may be seen after you make an application for a reverse mortgage. Keep in mind, however, that if you do sign an application for a reverse mortgage prior to counseling, that the loan cannot be processed until that counseling certificate is issued to you. That means that no appraisal or termite inspection may be done until you receive your counseling certificate. Additionally, escrow or title may not be ordered.
So, even though you sign an application, nothing happens with your loan until you are counseled. As I mentioned last time, one of the reasons you might want to sign the application prior to counseling is to protect yourself in the case of rising interest rates. If you do sign an application prior to counseling, you are not obligated to proceed with the loan process. You may cancel. In fact, you may cancel your loan at any time, until your loan rescission period is over. After your loan funds, of course, you cannot cancel the loan. However, you may pay off your conventional reverse mortgage at any time without any pre-payment penalty.
Back to the counseling issue, there is a list of HUD approved counselors on the HUD website. That website is:
The counselors are listed by state, then in order alphabetically by city. There are 10 locations in San Diego County. If you do not have access to the internet, give me a call and I will give you the contact information for the nearest counselor in your area.
The counselors review the three different reverse mortgage programs. They also ask about your budget and you need to be prepared to give them estimates of how you spend your money. They do want to see evidence of income, so they may ask you to bring your Social Security statement with you. The session usually lasts 45 minutes to an hour. After which, they usually issue a completed certificate and a copy. The original must be presented to me, your lender. That is my trigger to proceed with the processing of your loan.
Remember, I am available to review your reverse mortgage options with you privately. This is a wonderful program, but sometimes it's not the right option for my client. The way I discover if a reverse mortgage is right for you is to present the numbers and ask the right questions. If it's not the right option for you, I will be the first to say it. Believe me, my goal is to have a happy client when the transaction is complete. I work very hard to put a smile on my seniors' faces and money in their pockets. Please call me if you are looking into a reverse mortgage. I'm close by…
Please call me if you are interested in a reverse mortgage. I would be happy to meet you in the privacy of your own home.
Your Local Reverse