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Article Title: How Do Reverse Mortgages Work! Compulsory Counseling
Author: Juhani Tontti
Category: 
Word Count: 486
Keywords: reverse mortgages,what is a reverse mortgage,how does a reverse 
mortgage work,reverse mortgage
Author's Email Address: [email protected]
Article Source: http://www.articlemarketer.com
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The reverse mortgages are long term deals with all pros and cons and this is 
the reason, why all influences must be on the table, before a senior takes the 
loan. 

The idea of the compulsory counseling is, that all these small facts will be 
gone through in advance.

1. If You Think Federally Insured Reverse Mortgages, You Must Go Through The 
Counseling.

This is a law. But if your home value is above $ 625.000 federal limit, the 
counseling is voluntary. Some lenders may suggest, that you speak first with 
their own advisor, but that is not of course the same as to speak with an 
independent, official counseling from an independent HUD approved counselor.

2. When I Go Through The Terms Of The Reverse Mortgages, How Can I Find A 
Counselor?

Companies, which market the reverse mortgages, must have a list of 10 
counselors of which 5 must be the  local ones and the rest national 
intermediaries. 

If you go to the website of the HUD, you can find national counseling agencies 
as well as the local agencies, which HUD has approved.

3. Which Topics Will Be Handled In The Meeting?

Well, the basic idea is to go through your present financial situation and your 
targets. They start about why you are interested about the reverse mortgages, 
your debts, income, present mortgage, monthly expenses, medical bills, home 
improvement plans, your access to emergency cash and the possibility that you 
will move into the nursing home or into the new home within the next few years.

They will also advice you about the terms of the different lenders of the 
reverse mortgages. Another  things are the different choices, i.e. not reverse 
mortgages but totally other kind of products, which  cover your needs.

It is vital, that you will prepare yourself for this meeting by going through 
all your regular expenses and the equity you own, including debts. 

Make clear, why do you need the money, when and how much do you need. The more 
you have questions for this about one hour meeting, the better. They cannot 
help you, if they do not know your situation.

4. What Does  The Term  Certificate Of HECM Counselor Mean?

To put it simply, the certificate is a written proof that you have got 
counseling about the reverse mortgages. So this certificate must be attached to 
your reverse mortgage application and it must be an original one, not a copy.

The cost of the counseling is usually $ 125 but can also be higher in some 
special cases, for instance if you are facing foreclosure, bankruptcy, an 
immediate medical crisis or another hardship. 

If you cannot pay the fee, the counselor must in any case advice you. In some 
cases, the fee can be paid, when your reverse mortgage loan will be closed.

As you see, there are many small things, which are important for many people, 
so make your questions list and contact the counselor.

Juhani Tontti, B.Sc., Marketing. How Do Reverse Mortgages Work? There Is Lots 
Of Pros And Cons Concerning The Question Of How Does A Reverse Mortgage Work 
And You Have To Know Them. Visit: http://www.ReverseMortgageEarnings.com
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