Yes.  Be "very careful" who you deal with.  Once you receive the money, think twice about re-investing it into other products.  That's where seniors have gotten themselves into trouble. 

Once we see you through to closing, the Senior has the right to do anything they want with that money.  That's where the trouble "can" begin.

If the money is left in the credit line; no one can touch it except the client who is on the account. 

Most of your seasoned Revese Mortgage representatives are trustworthy and care so much about the seniors, but you will (from time to time) get the less than reputable representatives.

Don't let anyone pressure you into doing anything with that money until you have checked out all possibilities.

jnixon 

(866) 638-3307

Reverse mortgages provide more seniors with a safety net

http://www.latimes.com/classified/realestate/news/la-re-reverse24feb24,0,1068452.story?track=rss

Your posted article is very good and as been seen by many.  Many of the Reverse Mortgage Specialists that have been in this business for a long time have been trained and certified in the reverse mortgage industry extensively.

A few words of advice when looking for Reverse Mortgage Companys:

Choose a company with a long-standing reputation in the business, such as:

Bank of America

Bank of NY

Financial Freedom Senior Funding

Seattle Mortgage

They are major players. 

When using a company that is a Correspondent, ask them who many years the Rep has been in the business.  This is a good indication of whether or not they know the HUD regulations well. Check on how long the company (or broker) has been in business.

Ask your Rep what kinds of Certifications they hold (i.e. Cerfitifed Senior Advisor, Natl Assoc of Financial Planners, Estate Planning w/ knowledge of Reverse Mortgage, etc.)

Make sure they go over every page w/ you while you are signing.  Have someone in your family or a friend w/ you.  Two brains are better than one.

LASTLY,

It is "not" recommended that you take your awarded funds in the credit line and use it to purchase any kind of an annuity or insurance.  It is against HUD regulations to suggest that to any borrower.

"The remaining $100,000 was used to purchase, at the saleswoman’s urging, two deferred annuities — complex contracts that offer monthly income in exchange for a large lump-sum payment..."

We recommend that "if you do not need the money right away ... don't take it out!  Let it grow for you."  Every year, additional money is added to the credit line in December.  Sometimes, that's enough to pay your taxes and have a nice Christmas and you are not touching the principal.

Not every RMS is out to SCAM you!  The best are trained to Counsel, Counsel, Counsel.  If someone is trying to "sell" you a reverse mortgage ... back off of them!!

I hail from Financial Freedom Senior Funding Corporation where I was trained extensively ... and I do mean "extensively".  I love working w/ senior citizens, orgainzed and became President of the Business Network League (a senior organization to help the elderly w/ their issues) and worked on the Bethany Presbyterian Church Community Team working to provide better Housing Counseling for the Community.

My Advice:   Get Counseld on the program. Learn all about it from a qualified RMS and then make your decision. Also, don't wait until it's too late.  Approximately 30% of all reverse mortgages do not qualify for different reasons and are turned down.

Jacquelyn E. Nixon, RMS, CSA

(866) 638-3307

POSTED 10/16/2009 

 Hello Everyone!

There have been a few changes in the Reverse Mortgage industry that I think you should know about.  This heavily regulated HECM program is about the only thing that senior citizens can count on.  Some of the new regulations are (and mind you... it may change again next year):

1.  As of October 1, 2009, seniors will get approx 9% less tax-free money from the program.  It's not a lot and it's designed to spread the wealth.

2.  Condominum complexes (where you pay association dues or condo dues) must now be approved by HUD.  It takes approximately 4 months for the approval of your association.  If not approved by, no company can take your application.

4.  You must be counseled by a certified HUD Housing Counselor before any processing can be done on your application.

 You may contact me at anytime for any additional information.  After 8 years, I have seen regulations change again and again.  But, the rules of the Reverse Mortgage and how it works has not!!  No one will take your home. This program is set up to help seniors stay in their homes. Your name stays on the title forever.  They won't come after the kids or the rest of your estate.  And ... the award amount is tax free and does not affect your social security or medicare benefits.

Investigate the program thoroughly. Talk to a trusted advisor first.  (866) 638-3307

Reverse Mortgage Consultant (RMC)

Certified Senior Advisor (CSA)

www.hud.gov

Jacquelyn Nixon, RMS, CSA

Reverse Mortgage Specialist

Certified Senior Advisor

Toll Free (866) 638-3307

Direct: (951) 530-1558

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