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Reverse Mortgage Blog

Are Reverse Mortgages Safe?

February 14, 2023
 
With financial scams targeting seniors occurring with such frequency, it’s fair for senior homeowners to ask, “Is a reverse mortgage safe?” Since the first FHA-insured reverse mortgage was issued in 1989, many safeguards have been put in place to protect senior homeowners against unscrupulous practices. It begins with a requirement that seniors be counseled by an independent third party, usually by phone, to make sure they fully understand the terms of the loan.
 
There is a “senior friendly” financial assessment that is also required, to determine whether the borrower can meet all the qualifying criteria. They must live in the home as a primary residence, keep up with the loan obligations of keeping the home well maintained, and stay current on their property taxes and homeowners’ insurance. There are also safeguards for eligible spouses of senior borrowers who are either not 62 at the time of the signing or not named on the title.
 
Once a borrower passes or is moved to a care facility, the non-signatory spouse can remain in the home without any principal and interest payment obligation until they pass away or move out. To find out more about the strong consumer safeguards built into reverse mortgages, call us today.

 

Owen Coyle profile picture
Owen Coyle
I’m Owen Coyle, an 87 year young “Seasoned Citizen” living in Escondido California. As of April 1, 2023 I’ll be starting my 23rd year as a Reverse Mortgage Specialist. I have no desire to retire, so as long as my health remains good, I’m planning on helping senior homeowners obtain Reverse Mortgages at least until I’m 90, and hopefully a few years beyond. I absolutely have a passion for working with senior homeowners, improving their “Quality of Life” and giving them “Peace of Mind” by setting up Reverse Mortgages for them. A Reverse Mortgage is not for every senior, but when “It Fits”, it can absolutely change their life for the better. When I meet with seniors, I always suggest that they include as many of their children as possible in our meetings. I always want to have the entire family “On The Same Page” and understand how the Reverse Mortgage will benefit their parents based on their particular situation and needs. Most Reverse Mortgage companies do business by using the telephone, email or US Mail and use a notary to take care of the Reverse Mortgage “Application and Closing Documents”. I do business “The Old Fashion Way”. I go to the seniors’ home and sit down with them at their kitchen table and talk with them “Face to Face”. I make sure that I answer all their questions and that the entire family understands how the Reverse Mortgage works. I’m very concerned about how much “Misinformation” and “Misconceptions” about Reverse Mortgages there are out on the street, so I’m on a mission to get “The Truth” out to as many seniors as I can as I talk to them individually and through my Reverse Mortgage workshops and seminars. Please call or email me (760-334-6155, owen.coyle@gmail.com) with the information that I need and I will prepare a "No Obligation Benefits Analysis" for you. This information will be used to create a computer printout that will show the approximate amount of money that will be available for you and the various payment options that will be available to you.
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I’m Owen Coyle, an 87 year young “Seasoned Citizen” living in Escondido California. As of April 1, 2023 I’ll be starting my 23rd year as a Reverse Mortgage Specialist. I have no desire to ret...
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