Reverse Mortgage Anxiety

Reverse Mortgage Anxiety

Myth: There is a prevalent myth out there which is very widespread that if you take out a reverse mortgage you have to be worried about losing your home and that you will then be forced to go live in a nursing home or worse yet, be reduced to living on the street.

Reality: While it is true that there are some unscrupulous companies which will process a reverse mortgage you are protected from the above concerns if you choose a traditional lender and get a reverse mortgage which is guaranteed by the Federal government.

It is true that using the equity in your home for a reverse mortgage is serious business and something you should not do without :

a. Real clarity on EXACTLY what the costs are

b. How much equity your home REALLY has

c. What happens AFTER the reverse mortgage

d. What happens AFTER you no longer live in the home

e. Rights of heirs AFTER your death

Get some answers

All of these questions (and more) can be answered during the MANDATORY counseling session if you are using a government backed reverse mortgage. These counseling sessions are usually provided by a HUD approved housing agency and yes, your family members are welcome (and encouraged) to attend. This decision is important enough to ask the kids to come home and attend with you so that all of you are clear on exactly what this means for the family.

Resources

We have provided you with some good resources and hope that you will take the time to get informed about this option which could make a huge difference in your monthly budget by giving you the extra income you need. Or perhaps allow you to attend more family functions and see the grandkids you haven’t seen in many months. Fixing the kitchen floor/bathroom wall/front porch (you name what needs fixing at your house) could be accomplished with the funds from a reverse mortgage.

It’s your house, your equity—Use it to make your life better.

Just take the time to get some fact first.

AARP — Click here for their website.

Financial Freedom — Click here for their website.

HUD — Click here for their website.

National Consumer Law Center — Click here for their website.

Federal Trade Commission — Click here for their website.

I’m counting on you to do your homework and make a good decision. You are too old to get caught half-stepping!

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

Q&A: Foreclosure Prevention Resources

Foreclosure Prevention Resources

Q: If you are facing foreclosure, what resources—including agencies, websites, publications, counseling, governmental departments, legal aid, etc.—are the most helpful to homeowners in crisis?

A: You are to be commended for trying to find some help on-line since it is difficult to get face time with a local agency in many parts of the country. That does not mean that help is not available.

First, this website has a wealth of information if you study many of the questions and answers related to foreclosure. I will also list several really good websites for you to access.

• Home Ownership Matters (www.HomeOwnershipMatters.com)
  
• Fannie Mae (www.fanniemae.com)
  
  
• HUD (www.hud.gov)
  
  
• Freddie Mac (www.freddiemac.com)
  
  
• National Consumer Law Center (www.consumerlaw.org)
  
• Center for Responsible Lending (www.responsiblelending.org)
  
  
• Federal Trade Commission (www.ftc.gov)

Books

• National Consumer Law Center (specifically—Foreclosure Prevention Counseling and Guide to Surviving Debt) *Anything they sell will probably be helpful

Local Resources

• Legal Services
  
• Legal Aid
  
  
• Attorney General’s office
  
  
• HUD housing counseling agencies (call (800) 569-4287 to find a center near you)
  
  
• Your state’s Housing Finance Authority

Warning: It is important that you research very carefully any organization which is offering help for a fee. Many, NOT ALL, but many fee for service businesses are scams. You should be especially careful of any organization which wants you to pay thousands of dollars for help which does not have an office in your town where you can go sit and meet with someone.

Questions to ask:

1. Is the business registered with the Attorney General’s Office? Secretary of State? local Better Business Bureau?
   
   
2. Is it a legitimate business with a local office, staff, a parking lot?
   
   
3. Can the person offering service provide documentation of Training/Certification? By whom?
   
   
4. Can you review all the paperwork related to the services they are offering? before you sign up and give them money?
   
   
5. Are you able to change your mind and get out of the contract? Where does it say that?
   
   
6. Can they provide references? ( You better check them)

Getting help with addressing your foreclosure problem can itself become a problem. Hopefully this article along with the resources provided will help you get the help you need. Hang tough. Stay determined. Don’t MOVE out!

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

WORD: Title & TILA

And the WORD for Today is:

Title – the legal document which establishes your right of ownership.

TILA – one of the nation’s more important consumer credit statutes. TILA stands for the Truth in Lending Act, which requires that creditors must disclose, in writing, certain information related to the cost of the credit obligation which the consumer will have as a result of signing the documents for the loan in question. The TILA requirements includes disclosure of the true annual percentage rates as well as other important credit information. TILA violations are enforced by the Federal Trade Commission.

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

Community Service Announcement: Do-Not-Call List

Do-Not-Call-List

Are you still being interrupted during dinner or your evening television program by telemarketers wanting you to buy this or that or put a roof on your apartment? Are you sick of rushing to the phone thinking it might be your sister calling and it is yet another sales pitch for something you never heard of and certainly don’t need?

Then STOP it!

The Federal Trade Commission had provided you with a solution but you need to take some action. Perhaps you were unaware that you could block most calls from folks trying to solicit your business over the phone by signing up for the national DO NOT CALL LIST.

• There is NO deadline. Sign up today if you have not done so already
• Applies to both cell phones and/or regular phones
• You can register BOTH of your phones, cell AND land line
• Process is simple

How to send telemarketers packing:

To add your name to the DO-NOT- CALL-LIST you may either:

• Register at www.DONOTCALL.gov or
• Call toll free 1(888) 382-1222. If you choose to call to register, then you must call from the number you wish to sign up.

Give a gift to a senior you know.

Want to do a major favor for some senior family member or friend? Then talk with them about this and handle it for them, if they agree that they would like to stop falling over things trying to get to the phone only to discover it was a telemarketer. Telemarketers are so bad that they have caused my 75 year old mom, who is a salt of the earth, good Christian woman to utter one of her few non-church words after rushing to the phone just to have someone trying to sell her something on the other end. She was definitely NOT happy. I have given her instructions on how to register her new phone number with DO NOT CALL.

Will ALL the calls stop?

Not all the calls will stop. But most of them will. Give them at least 31 days after you have signed up before you should expect most of the companies to have you in their system. But there are exceptions in the guidelines which will still allow certain types of calls. Those include:

• Calls from political organizations ( I know, we’re excited about getting those calls) as well as charities and telephone surveys
• Calls from companies with whom you have a business relationship (and they may continue to call up to 18 months after you purchased something from them or up to 3 months after you called them to inquire about something)
• Calls from companies who you granted permission to call you

Still receiving calls—RAT them out.…

If it has been more than 31 days since you signed up and you are still getting calls then report the offending company. The process is not complicated and will help the FTC to find and fine the violators. You may either go online to DONOTCALL.GOV or call 1-(888) 382-1222.

The Federal Trade Commission is one of the governmental agencies whose entire job is consumer protection. They serve as educators and enforcers. You would be amazed and would benefit greatly from studying their website and ordering some of the thousands of helpful booklets and pamphlets which they have to enlighten you about your rights and what recourse you have when they are violated.

That’s ftc.gov or call 1 (877) FC-HELP. 1 (877) 382-4357

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

WORD: Fair Debt Collection Practices Act

And the WORD for Today is:

Fair Debt Collection Practices Act—enforced by the Federal Trade Commission and is another strong consumer protection measure designed to prohibit abusive practices. Such practices might include overcharging, harassment with repeated calls or calls at inconvenient times. It is also a violation of the Fair Debt Collection Act to disclose any information related to your debt to a third party. A third party would include your mother, your spouse, your employer, your roommate, anyone who is NOT YOU. It would be appropriate for you to make a complaint to the Federal Trade Commission against that creditor if they were to violate your consumer rights in this way. The Act prohibits certain specific abusive communications including:

a. At unusual times (before 8am or after 9:00pm)

b. Repeated phone calls or excessive manner

c. At any place which is inconvenient for the consumer

d. At work if the employer does not allow personal calls

e. Directly to the borrower if they have already notified the creditor that they have an attorney.

f. By postcard or any other method which allows for the display of information about the debt to appear on the outside of the envelope.

g. After the borrower has made it clear they do not intend to pay the debt.

For additional information on the Federal Trade Commission, log onto: 

http://www.ftc.gov/index.shtml. 

Additional acts prohibited include:

a. Communicating with anyone other than the borrower except to secure location information

b. Misrepresenting the amount of the debt

c. Misrepresenting the legal status of the debt

d. Misrepresenting what actions the lender may or may not take as a consequence of the unpaid debt

e. Telling the consumer that their failure to pay the debt is a crime (it is NOT)

f. Threatening action which will not or cannot be taken legally against the borrower

g. Threatening to harm the borrower physically

h. Using language which is vulgar or abusive.

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)

What's That Mean?! (A-N)

You know how sometimes you see some letters jumbled together, and they just don't make a single bit of sense to you? Well, maybe this list of acronyms and abbreviations will help.

A.B.A.—American Bar Association

ALTA—American Land Title Association

A.P.R.—Annual Percentage Rate

ARM—Adjustable Rate Mortgage

BAPCPA—Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

BPO—Broker Price Opinion

CAIVRS—Credit Alert Investigation Verification Response Systems.

C.D.—Certificate of Deposit, see page

CDC—Community Development Corporation.

CMA—Comparative Market Analysis

C.P.M.—Certified Property Manager

C.T.A.—Cum Testamento Annexo (with the will attached. See Administrator C.T.A.)

CRV—Certificate of reasonable value.

DBA—Doing Business As.

DOM—Days on Market, see page #??

ECOA—Equal Credit Opportunity Act

EEM—Energy Efficient Mortgage

EIC—Earned Income Credit

EPA—Environmental Protection Agency.

ERTA—Economic Recovery Act of 1981.

FDC—Fair Debt Collection law

FDIC—Federal Deposit Insurance Corporation

FHA—Federal Housing Administration

FHLMC—Freddie Mac

FICO—See credit score.

FIS—Foreclosure Intervention Specialist

FSBO—“For Sale by Owner”

FTC—Federal Trade Commission

GFE—Good Faith Estimate

GNMA—Ginnie Mae

HECM—Home Equity Conversion Mortgage

HELOC—Home Equity Line of Credit

HOEPA—Home Owner Equity Protection Act--

HUD—Housing and Urban Development

HUD-1—See Settlement Statement.

IRA—Individual Retirement Account

LIHEAP—Low Income Home Energy Assistance

MERS—Mortgage Electronic Registration System

MIC—Mortgage Insurance Case Number

NAR—National Association of REALTORS

NSF Fee—Non-Sufficient Fund Fee. See Return check fee.

If you have any questions about these, you should always feel free to leave us a comment, or e-mail us.

Copyright © 2008, Home Ownership Matters, LLC. All Rights Reserved.

You can find more helpful definitions of Acronyms and Abbreviations like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.

(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)