Mar
2
Kenneth M asked:
My dad wants to get a reverse mortage loan, I am trying to convince him not to. I try & tell him that these companies are obviously making a lot of money, because they run so many TV ads. & he says “They are sponsored by the gouvernement” I believe on the ad they mention something about “THe gouvernement.” What can you tell me about this? I want to come back at him with some facts like “For your information dad, they are independent corporations & the gouvernement has nothing to do with the actually lending of the money, the most the gouvernement did for these companies was hand them a license to do so.” something like that, please help me, I really need him to “Drop it” just drop the subject completely, anything you can do to help! please & thank you!
WILLIE
My dad wants to get a reverse mortage loan, I am trying to convince him not to. I try & tell him that these companies are obviously making a lot of money, because they run so many TV ads. & he says “They are sponsored by the gouvernement” I believe on the ad they mention something about “THe gouvernement.” What can you tell me about this? I want to come back at him with some facts like “For your information dad, they are independent corporations & the gouvernement has nothing to do with the actually lending of the money, the most the gouvernement did for these companies was hand them a license to do so.” something like that, please help me, I really need him to “Drop it” just drop the subject completely, anything you can do to help! please & thank you!
WILLIE
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2 Responses to “Are reverse mortgage Loans sponsored by the gouvernement?”
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WINSTON
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.
TRAVIS
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.