Are you recently retired or planning for retirement? If so, you have probably been hard at work looking for ways to achieve true financial stability and bolster your fixed income. You have probably also started receiving calls and emails to this end, many of which appear dubious or suspicious. The unfortunate reality is that fraudsters and criminals often target older adults, and they use downright nasty means to do so. For example, there are currently popular scams where these criminals claim they are with the Internal Revenue Service or the Social Security Administration. They pose as people with legitimate roles only to reveal their malicious intent when it is too late.
The Reverse Mortgage is also a victim of this misrepresentation. The irony is that real Reverse Mortgages are incredibly helpful and empowering to retirees; however, they also offer a cover for illegitimate people to take advantage of potential borrowers. This not only creates an unfortunate situation for victim, but also leads other people to avoid Reverse Mortgages when they could be extremely beneficial.
If you are looking for a way to supplement your fixed income and retire in comfort, do not be deterred from a Reverse Mortgage by the misconception that they are illegitimate. Below are a few important facts to consider.
Fact 1: Reverse Mortgages Feature Consumer Protections.
A proper Reverse Mortgage has several measures in place to protect borrowers from being taken advantage of. Among the most important is the mandatory educational session. The U.S. government, specifically the Department of Housing and Urban Development (HUD), requires potential borrowers to complete this session with a third-party counselor it has approved whom has no vested interest in whether you move forward with the loan or not. This ensures that the borrower is fully aware of what a Reverse Mortgage entails before anything is set in stone.
Fact 2: You Will Still Own Your Home.
Many people are unaware that a Reverse Mortgage does not require them to sign their home over to a bank or lender. If you were to go this route, you would retain ownership of your house and your name would remain on the title. This is a relief to many, as it can be stressful to cede ownership of the home you have worked so hard to purchase, maintain, and pay off.
Fact 3: You Cannot Go Upside-Down on Your Loan.
Reverse Mortgages are non-recourse loans, meaning that you will never be liable for a repayment that is larger than the value of your home. This is not the case with an option like a second mortgage, where you may find yourself owing much more than the property is worth down the road. It is one of the many reasons Reverse Mortgages are such a reliable source for older homeowners.
Would you like to learn more about the benefits of a Reverse Mortgage? Contact Retirement Home Equity Advisors today! We are a team of licensed specialists serving senior homeowners throughout the States of Arizona, California, and Colorado. We can help you strategically leverage your home equity to decrease risk and improve financial stability throughout your retirement.
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