Tips To Avoid A Reverse Mortgage Nightmare

1. One way to avoid even thinking about doing a reverse mortgage is to not wait until you simply don't have any other option. Do not go into something like a reverse mortgage without counseling with a HUD-certified housing counselor. If you make huge decisions such as getting involved with a reverse mortgage during a time of financial stress, you will likely end up worse off than you started.


2. Another tip for avoiding a reverse mortgage nightmare is to search around for all that is offered. You don't have to settle for a reverse mortgage just because you think it's the only thing you can do. Talk to a financial counselor and find out what all of your options might be and then make an informed decision based off of the facts and not just what you think the facts might be.


3. If the lender you have chosen to move forward with suddenly starts telling you that your home needs a ton of repairs, be sure to find a new lender as quickly as possible. HUD insures over 95% of reverse mortgages and they only require that the home be safe and functional. Any small issues that your home might have shouldn't even come into play during a reverse mortgage consultation.


4. If you feel pressured at all to sign on the dotted line to receive a reverse mortgage, do your part and do not sign the papers. You don't want to end up in a reverse mortgage nightmare just because you felt like you were being pressured into signing the papers. Again, get up and leave the room if you feel any kind of pressure to sign on the dotted line for a reverse mortgage.


5. Be sure to show up for the closing if you do decide to do a reverse mortgage. If you are not present things may go astray and you might end up with a raw deal in the end.