What is Reverse Mortgage Counseling?

Today, I give you the lowdown about reverse mortgage counseling. If you have not attended one before, this is great information on what you have to look forward to and how you can use it to benefit you.

Prior to being approved for a reverse mortgage, borrowers are required to attend a mandatory reverse mortgage counseling session. The reverse mortgage counseling session requires the borrower(s) to review the reverse mortgage process with a HUD-approved third party counselor. Because the reverse mortgage process can be confusing, this gives borrowers a chance to ensure that they fully understand the reverse mortgage loan process and to make sure that they are doing what is right for them.

During the counseling session, the Home Equity Conversion Mortgage (HECM) counselor will discuss with the borrower(s) all the possible options they may have, review the borrower’s obligations to the lender and answer any questions the borrower(s) might have. The counseling session is designed to protect the borrower(s) before they go through with their reverse mortgage loan to make sure that they have a clear understanding of the process.

The reverse mortgage counseling can be done over the phone or in person. Anyone that is on the deed is required to attend the counseling meeting to ensure they have a full understanding of the reverse mortgage process, requirements and obligations. After the borrower(s) has completed the counseling session, they will receive a certificate that will allow them to move forward with their reverse mortgage process.

*Tip: It is important for people living in the residence in question to understand what will happen when the reverse mortgage loan becomes due. Take them along so that their questions may be answered and they have a full understanding of what this loan is all about.

Read Related Articles:

Top 6 Reverse Mortgage Counseling Questions

Who Needs to Attend a Reverse Mortgage Counseling Session? 

If you are looking for more information regarding reverse mortgages, you could speak with an advisor, call 1-888-808-8486.

 

About the Author:

I have been working in the reverse mortgage industry for 20-plus years. My goal is to provide consumers the most up-to-date and relevant information about the reverse mortgage industry and how it can affect them.

Thanks for reading.

-Alan F.

Image courtesy of [stockimages] / FreeDigitalPhotos.net