Will More Reverse Mortgages Mean More Fraud?

Reverse Mortgages

My name is Tony, my parents took out a reverse mortgage mid 2008 and it was the best thing they did. The home was free and clear.They took out the reverse mortgage with the credit line option. So far, to date the balance owed on the home which were just the closing cost has increased approx. $729.35 and the credit line has increased in availability $8,624.31. If they do not touch any further funds from their line in 10 years they will have an additional $92.548.17 in addition to the $ 211,589.61 that they could have taken as a lump sum if they wanted too. That's a total of $304,137.78. The home is not even worth the intial 290,000.00 that it was appraised at when they took out the reverse. Not everyone benefits from the reverse mortgage but if you dont know about them you should not comment on them.

Tony M of FL @ Jul 20, 2009 15:31:44 PM

reverse mortgage

My name is Mary V Headley, I took out a reverse mortgage on my home last August/september, as my husband died leaving me with a lot of financial problems, although I had a good job, my son has terminal cancer and is now living with me. I took out the R.M so that I could retire I was 69 and very tired and wanted to stay home and take care of my son, however my SSecurity was not enough to pay bills and the home payment. I did not realize at the time that they were going to charge me $30.00 a month for having the account, plus my Insurance went up because of the loan, and I was told the interest rate would not go up but they send me a statement every month and the interest is going up, five years from now should I die, I will owe more than my home is worth. and my children will have nothing. Can I try to sell the home and pay of the mortgage, then there might be enough over to give my children, and I can check out low income housing and take care of my son. if you could contact me at 850-678-2869 or write me Mary Headley 1405 22nd street, Niceville Fl.32578. I would appreciate it. I am having computer problems and I may not get your email, should you try to email me, but you can try. thankyou very much Senior Citizen

mary veronica Headley of FL @ Jul 11, 2009 02:58:00 AM

Reverse Mortgage

I have two comments on this Reverse Mortgage article.

Number #5 states that some lenders include government symbols and logos in an attempt to misrepresent Government affiliation. All Mortgage Companies that originate Reverse Mortgages must have an FHA license. We use the FHA & HUD logos to indicate that we are licensed by FHA. Many State Regulatory agencies also require that Lenders put the State License number on all written materials.

Anthony G. Medici an Investigator with HUD mentions a specific fraud involving "phony home buyers". This was occurring in large numbers in 2008, however one year ago, all Reverse Mortgage Lenders placed seasoning requirements on all Reverse Mortgage loans. Today Lenders require that the title to the property must be in the borrower's name for 12 months prior to closing. This strict policy was implemented by the

Lenders specifically to stop this kind of abuse. As this program becomes more popular, there will be attempts

by unscrupulous companies to take advantage seniors and Lenders. The good news is that there are a lot of procedures in place now to identify these people very quickly. Additionally, the guidelines require the originators of Reverse Mortgages to submit documentation that is reviewed many times before the loan reaches the closing table. The people that work in the Reverse Mortgage Industry all share a common goal.

We want to help senior citizens stay in their homes with some comfort and financial security. The bad guys

will discover soon enough that this is not a way to make a quick buck. It takes time and a lot of patience

to close a federally insured Reverse Mortgage.

Jack Wilkes,

Seniors Home Reverse Mortgage Decatur Georgia

Jack R Wilkes of GA @ Jul 01, 2009 18:23:54 PM