Reverse Mortgage Counseling with no Cost
A number of HECM Reverse Mortgage Counseling Agencies are providing counseling sessions with no cost at this time. These are counselors who have received grants and are able to educate seniors on reverse mortgages and provide a counseling certificate. When grants run out, they will charge the typical fees of $125 to $150.
If you wish to receive a counseling list, send a request to Maggie O'Connell.
Topics to be discussed
at HECM Counseling
_____ How unexpected medical or other events that cause the prospective borrower to move out of the home, either permanently or for
more than one year, earlier than anticipated will impact the total annual
loan cost of the mortgage.
_____ The extent to which the prospective borrower's financial needs
would be better met by options other than a reverse mortgage, including,
but not limited to, less costly home equity lines of credit, property tax
deferral programs, or governmental aid programs.
_____ Whether the prospective borrower intends to use the proceeds of
the reverse mortgage to purchase an annuity or other insurance products
and the consequences of doing so.
_____ The effect of repayment of the loan on nonborrowing residents of
the home after all borrowers have died or permanently left the home.
_____ The prospective borrower's ability to finance routine or
catastrophic home repairs, especially if maintenance is a factor that may
determine when the mortgage becomes payable.
_____ The impact that the reverse mortgage may have on the
prospective borrower's tax obligations, eligibility for government
assistance programs, and the effect that losing equity in the home will
have on the borrower's estate and heirs.
_____ The ability of the borrower to finance alternative living
accommodations, such as assisted living or long-term care nursing home
The counseling certificate is good for 6 months and required before starting the reverse mortgage purchase or refinance transaction. If you have any questions about reverse mortgages or the HECM counseling, please call Maggie O'Connell at 800-684-9438.