About Reverse Mortgage Counseling
Reverse Mortgage Counseling or HECM counseling is required to obtain a Reverse Mortgage. You can attend your counseling in person at a local HUD approved counseling office or you can receive Reverse Mortgage Counseling by phone. Your Reverse Mortgage counselor is familiar with the basic Reverse Mortgage products. Reverse mortgage counselors are not loan officers nor do they represent any particular lender. They are an independent HUD approved counselor who has been trained to walk you through the basic tenets of a Reverse Mortgage.
What to Expect When You Attend Reverse Mortgage Counseling for HECMS
The purpose of Reverse Mortgage counseling is to help you make an informed decision. Your counseling will last about one hour, and, depending on your questions, may take longer. Be sure to write down your questions for the counselor prior to the counseling session. Your Reverse Mortgage counselor will discuss the Reverse Mortgage program with you and review your alternatives. Your counselor will go over your budget to see if a Reverse Mortgage is the right vehicle to suit your needs. Counselors are not loan officers nor do they represent any particular lender; they are an independent HUD approved counselor.
After your HECM counseling is finished, your Reverse Mortgage counselor will issue a HECM / Reverse Mortgage Counseling Certificate which your counselor will sign. You will also sign and date the certificate at your leisure. (If you receive counseling by phone, your certificate will be mailed to you.) You will then provide this certificate to your Reverse Mortgage Specialist, and you will retain a copy. Once your Reverse Mortgage Specialist receives your HECM counseling certificate, the Reverse Mortgage process can begin and an appraisal of your home can be ordered. NOTE: There is a fee for Reverse Mortgage counseling, typically $125. Check with each agency regarding this fee as it may be waived if you qualify)
Who Can Attend Reverse Mortgage Counseling?
All interested parties to the transaction may attend. Family members may be present at Reverse Mortgage counseling. If you like, you may also invite a friend to come along. In cases where there is a Durable Power of Attorney and the borrower is unable to attend counseling, the person holding the Power of Attorney will attend the counseling. If the borrower is unable to sign the documents or is unable to understand the process due to an illness, the attorney in fact will sign the documents at application and closing. A copy of the Power of Attorney must be provided to your counselor. Underwriting will review the documents and also request whatever letters from physicians that are needed.
To find a HECM counselor in your area, click here for HUD.gov.
Having Reverse Mortgage Safeguards such as HECM counseling ensures that the progam is viable, fair, and unbiased. Naturally, Reverse Mortgage Specialists know more than anyone about the program, attending HECM counseling which is required will give you an extra layer of protection so when you make your decision, you are sure of the step you are taking.
What to Expect When You Attend
Reverse Mortgage Counseling for HECMS
It's important to write down your questions prior to your HECM counseling session, but it's also important to study about Reverse Mortgages so you totally understand the step you are taking. The reverse mortgage process cannot begin with a HECM counseling certificate which you receive after counseling.
As mentioned, the $150 counseling fee may be waived if there is evidence of a hardship. Some counselors will also wait until closing to receive payment for this fee, and the fee will become part of the HUD closing/settlement statement.
That's right! And just like with the HECM Reverse Mortgage, there are no monthly mortgage payments. So if you've been thinking about moving closer to the kids and grandkids, consider a HECM for Purchase. You can use the proceeds from the sale of your current home or your accumulated funds for the purchase .
ALTERNATIVES TO A REVERSE MORTGAGE
• Low-Cost Public Loans (used for home repairs for low to moderate incomes)
• More Costly Private Loans or refinance mortgages
• Public Benefits: Government programs that may be a better choice than reverse mortgages.
• Seriously Consider Selling
Click here to find a HUD approved Reverse Mortgage Counselor from the HUD.gov website. You can do counseling in person or by phone
Consider counseling with an advisor or attorney or financial planner. Family members can help but often do not know the ins and outs of the Reverse Mortgage program. Have all parties meet your reverse mortgage specialist so the program can be adequately explained and reviewed.
KATHIE ADLER, SENIOR REVERSE MORTGAGE SPECIALIST - RESIDENT OF LONG ISLAND FOR OVER 50 YEARS CAN HELP! Member of Sun Suffolk- NRMLA
KATHLEEN ADLER'S NMLS ID: 65780 - NMLS Consumer Access Site, go to: www.http://nmlsconsumeraccess.org
Reverse Mortgage Helpline - Answering Your Questions about Reverse Mortgages
ADVISORS MORTGAGE GROUP, LLC Branch NMLS 1833015, 3330 Park Avenue, Suite 1, Wantagh, NY 11793
Licensed by the New York State Department of Financial Services, Licensed Mortgage Banker.
Licensed by the New Jersey Dept of Banking and Insurance
KATHLEEN ADLER, Mortgage Loan Originator, NMLS Identifier 65780, Licensed by the New York State Department of Financial Services, Licensed by the New Jersey Dept of Banking and Insurance. This Website maintained by Go Daddy, Copyright 2014 - Website name obtained in 2008. All Rights reserved.
NOTE: Website authorization by New York State Dept of Financial Services is pending. Until this website is authorized, no mortgage loan applications for properties located in New York will be accepted through this site.