Reverse Mortgages

Reverse Mortgages are becoming popular in America. Reverse Mortgages are a special type of home loan that lets a homeowner convert the equity in his/her home into cash. They can give a lot of older Americans greater financial security to supplement social security, meet unexpected medical expenses, make home improvements and more.

If you are interested in a reverse mortgage, beware of scam artists that charge thousands of dollars for information that is free from HUD!

Also, be cautious if anyone tries to sell you something like an annuity, and suggests that a Reverse Mortgage would be an easy way to pay for it. If you don’t fully understand what they’re selling or you’re not sure you need what they’re selling, be even more skeptical.

No matter why you decide to take a Reverse Mortgage, you generally have at least three business days after signing the loan document to cancel it for any reason without penalty. Remember that you must cancel in writing. The lender must return any money you have paid so far for the financing.

For more information, please review The Attorney General Warns Consumers to Get the Facts Before Considering "A Reverse Mortgage" (pdf). 

To report fraud or abuse in the Reverse Mortgage program, contact the Division of Mortgage Lending at http://www.mld.nv.gov/.

Source: http://www.hud.gov/buying/rvrsmort.cfm  and http://www.ftc.gov/bcp/edu/pubs/consumer/homes/rea13.shtm