By Admin on Nov 25, 2008 in Renting & Real Estate
Loan Officer Tim asked:
I’m trying to be one of the “good guys” in this area of business as I have been for the last 10 yrs doing traditional mortgages. I’m looking for straight talk about how to best serve the senior citizens of the U.S.A. and how to find those people who could benefit from a HECM (home equity conversion mortgage…aka reverse mortgage) Sorry if asking business questions is not allowed – I was thinking more along the lines of market research. What do people know? How do they feel? What do they think they know? How can I be a better loan officer? What is the best way to market to you or educate you?
Thank you first three for posting as I’ve learned already the confusion surrounding this. (people can NEVER lose their home or be asked to leave. Our govt. insures these loans to ENSURE that lenders AND borrowers are protected and get all that they are supposed to.
It is a loan. A non-recourse loan…meaning the lender can NEVER be paid anything from the borrowers. Lender only receives payment when house is sold after persons pass away or permanently move out. Heirs may keep the home and do a regular refi to get it in their name if they wanted.
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I’m trying to be one of the “good guys” in this area of business as I have been for the last 10 yrs doing traditional mortgages. I’m looking for straight talk about how to best serve the senior citizens of the U.S.A. and how to find those people who could benefit from a HECM (home equity conversion mortgage…aka reverse mortgage) Sorry if asking business questions is not allowed – I was thinking more along the lines of market research. What do people know? How do they feel? What do they think they know? How can I be a better loan officer? What is the best way to market to you or educate you?
Thank you first three for posting as I’ve learned already the confusion surrounding this. (people can NEVER lose their home or be asked to leave. Our govt. insures these loans to ENSURE that lenders AND borrowers are protected and get all that they are supposed to.
It is a loan. A non-recourse loan…meaning the lender can NEVER be paid anything from the borrowers. Lender only receives payment when house is sold after persons pass away or permanently move out. Heirs may keep the home and do a regular refi to get it in their name if they wanted.
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I’m not a big fan. Unless I’m wrong – it’s just a fancy name for a loan.
bobby d | Nov 26, 2008 | Reply
I am a real estate agent. The few people I have talked with that have had one of these loans were very surprised how quick the balance built up. They borrowed the whole amount they could and then the interest started compounding.
Within a few years they owed a huge amount more than they borrowed and that bothered them. It seems much the same as if they went to a pawn shop with a family heirloom and then found several months later they owed so much they could never get it back.
glenn | Nov 28, 2008 | Reply
There are some homes in my area that are subject to a reverse mortgage. In some cases, the owners owe more than the house is worth, and for some reason, the lenders seem unwilling to negotiate a short sale. I find that odd.
Fees, interest charges, racking up more than the home is worth. Hmm, sort of sounds like the next wave of problematic loans.
godged | Nov 29, 2008 | Reply