Is a reverse mortgage government sponsored?
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My father wants to get a reverse mortgage, I will try to convince him not to. And I try to say that these companies are probably a lot of money because they advertise so much on television. And He said: “They are government-sponsored” I think the ad, it mentions nothing about “government.” What can you tell me? “I want to go back to him some facts such as the” father your information, they are independent businesses and government has nothing to do with reality lend money to these enterprises by the Government gave them license to do so. ” Something like this, please help me, I really need her to “drop” just a drop in full, all you can do to help! Please and thank you!
And the banks themselves?
Like many people your dad is not aware that even though the government regulates these institutions they are still out to make money.
What a reverse mortgage does is it pays the homeowner a certain amount of money based on the equity of the home. IT IS STILL A LOAN AND MUST BE REPAID. Failure to repair this loan can result in the home being foreclosed upon…and all too often the terms are such that it is the heirs that must repay this loan after the recipient has passed away and the home cannot be sold because someone has a claim against it in the form of a reverse mortgage.
A reverse mortgage is good only for those people who have owned their homes outright for at least 10 to 15 years, and have never borrowed against the equity in the home. These people can then structure a loan amount that is within their budgets and not worry about losing their home.
no
zero to do with the government except that they have to meet the regulation set out by the governments.
In some cases a reverse mortgage can be useful. That is when the is no other money available and the homeowner plans to that they rest of their life in the house and are well over 70 years old.
There are very HIGH fees for this type of loan.
It is a loan of last choice.
A “reverse” mortgage is a loan against your home that you do not have to pay back for as long as you live there. With a reverse mortgage, you can turn the value of your home into cash without having to move or to repay the loan each month. No matter how this loan is paid out to you, you typically don’t have to pay anything back until you die, sell your home, or permanently move out of your home. To be eligible for most reverse mortgages, you must own your home and be 62 years of age or older. More information about reverse mortgages can be found here……
http://reversemortgageresource.blogspot.com
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It’s an excellent way to give up the equity in your house.
Do a lot of research on them. Although they’re highly regulated…. many people don’t totally understand the risks. This could severly hurt you in a world where inflation is not taken into account and your equity is gone.
If you are looking for a reverse mortgage to receive some much needed cash, you may want to look into a reverse mortgage wholesale loan. This is the perfect way for you to get a reverse mortgageagencies that sell reverse mortgage wholesale lender accounts. These agencies are the Federal Housing Authority, the Fannie Mae foundation and the Financial Freedom Cash Account.