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What is a Reverse Mortgage? |
Steps to a Reverse Mortgage
Counseling
No matter which reverse mortgage you choose, there is a
counseling requirement. This counseling is very helpful.
To be eligible for a federally insured HECM Mortgage,
you must discuss the loan with a counselor employed by a nonprofit or public
agency approved by HUD (the U.S. Department of Housing and Urban Development
or FHA). We will provide you with a list of FHA-approved counselors in your
area.
We are proud of the fact that many of
our reverse mortgage clients have told us there were no surprises. The counseling helped reinforce the fact
that what we presented was accurate. We believe homeowners want the facts, not a
sales pitch.
HUD regulations require that the home owner(s)
receive counseling/information about the implications of a reverse mortgage
prior to application for a HECM. The counseling sessions last
about one hour and cover:
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options available other than a reverse mortgage;
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presentation of the full finan cial implications of entering into a HECM;
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disclosure of tax consequences and possible changes of eligibility under state
and federal programs and determination whether or not the home home owner has
entered into an estate planning contract (HUD regulations limit participation
in these programs)
These sessions are structured to provide information
only. All final decisions are the responsibility of the homeowner(s).
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