Reverse mortgages can be a great financing option for some senior citizens, however, they do not always make sense for every person’s economic situation. Oftentimes, elderly home buyers can be targets for financial fraud, and can sometimes be the victims of economic scams. Dan Turner with Geneva Financial, can work closely with you and your family to ensure that you fully understand what type of reverse mortgage is appropriate for you, and help you become aware of the implications of the mortgage contract. If you would like to schedule a consultation in the areas of Hawaii, Illinois, or Ohio, Dan Turner will help explain senior safeguards and answer all of your mortgage questions.

Why Are Senior Safeguards Necessary?

Reverse mortgages are popular loans for borrowers that are 62 years or older, and are sometimes referred to as home equity conversion mortgages, or (HECM’s). Essentially, they allow senior citizens to exchange the equity they have built up in their home for cash or a line of credit. The lender receives the home equity, while the borrower receives a monthly payment without having to pay a monthly mortgage amount. The loan becomes due when the borrower moves, discontinues the loan, or passes away. In these events, seniors or their dependents must pay off the remaining loan amount, or the home can be sold to resolve the debt.

Since a reverse mortgage allows senior citizens an expedited way to receive money, senior safeguards have been put in place to help older borrowers protect themselves from making an ill-informed decision in exchange for a quick cash payment. Senior safeguards aim to protect the interests of the senior community by ensuring that a senior borrower clearly understands the benefits and options of the different types of reverse mortgages. Senior safeguards offer guidance and education for older borrowers so that they can make the most advantageous financing decision and to avoid exploitation by senior scams.

Reverse Mortgage Counseling & Reverse Loan Requirements

In order to receive a reverse mortgage, the borrower must complete a loan counseling session with a counselor that has been approved by the Department of Housing and Urban Development. In the session, the counselor will answer any questions the borrower has, as well as explain how the mortgage will work, the different payment options, and the financial costs associated with a reverse mortgage. The counselor will also review the eligibility requirements of a reverse mortgage, which typically include:

• You must be 62 years or older
• You must own the property or have a small amount left to pay off
• You must have no outstanding federal debt
• You must live in the home as your main residence

Getting Assistance With Senior Safeguards

Dan Turner with Geneva Financial strives to protect the interests of the senior community, as well as their families, by offering straightforward, objective guidance to determine what type of reverse financing is the best option for you. We serve clients in the regions of Hawaii, Illinois, and Ohio. Contact our office today for a consultation.