CBS News Reconsiders Reverse Mortgages

Recently, after addressing a series of potential pros and cons that seniors can consider with regards to reverse mortgage loans, CBS News decided to answer some basic and essential questions about reverse mortgages, and home equity conversion mortgages in particular. , spent a lot of online real estate. (HECM) — and how it fits into senior retirement plans.

Many of the statements in the latest CBS column don’t break new ground when it comes to the overarching reverse mortgage narrative, as industry pundits understand, but there are additional outlets dedicated to the topic. spaces are generally accompanied by a utilitarian valuation. Older people who may come across information.

“Reverse mortgages are useful if you need additional income after retirement,” the column reads. “It also helps free up cash flow by eliminating monthly housing costs. A reverse mortgage is not recommended if you don’t have the money to cover property insurance or taxes. You must keep these charges up to date while living in the home or it may lead to foreclosure.”

Foreclosures resulting from lapses in taxes, insurance, or other homeowner fees are also a notable concern for senior attorneys, most recently attorneys at the National Center for Consumer Law (NCLC) and reverse mortgage specialists. said Sarah Bolling Mancini at an event hosted by the US State Department. Housing Counseling Office for Housing and Urban Development (HUD).

“Many reverse mortgage borrowers didn’t understand that they had to pay real estate costs in the first place,” Bolling Mancini said at an event last month. Understanding [centers around not having] to make payments; Most people are so accustomed to having taxes and insurance premiums escrowed into their mortgage payments that they are not used to paying these fees directly and think of it as a housing payment. “

A recent CBS News column adds other considerations to the conversation, such as planning a property after a loan is due and payable, and choosing a lender to ultimately deal with.

“If you’re considering a reverse mortgage, make sure you have a plan for your estate when you die,” says Colum. “You can leave your home to your heirs, but they will be responsible for any loan balance you leave behind. In most cases, the balance will be paid within 30 days.”

Read the CBS News column.

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