July 28th, 2010 3:21 PM by Juan Luis Rodriguez-Kohly
Great News!
Now many Seniors can save $125 that they had to pay for the REQUIRED HUD counseling to be able to apply for a Reverse Mortgage.
In the past, this has been quite a burden on cash strapped Seniors. While not everybody might be abe to qualify, most Counseling Agencies are extending this benefit to Seniors.
HUD requires the Counseling by an approved third, disinterested party, so that Seniors understand better what is and how a Reverse Mortgage works. They will be better prepared to analyze if it is for them, without any sales pressure. It can be done in person or on the telephone.
One of the requirements HUD imposes on Loan Originators is that ONLY the Senior can initiate the call. Loan Originator MUST give the a list of at least 10 HUD approved Counseling Agencies, and CAN NOT steer them to any one Agency or make the call for the Senior.
The counseling will last between 45 to 60 minutes and while the Counselor will not approve or disapprove you, They may withold the Certificate if they feel there is something "wrong" or that the Senior does not comprehend. If there is a Durable Power of Attorney, the POA MUST be present at the session and its name must appear in the Certificate. Please advise the Counselor in advance.
If you or anybody you know need a list of counseling agencies in their area, please email me at RodKohly@HappySeniorHomeOwners.com
The Certificate DOES NOT obligate the Senior to continue with the application in any way or manner. It is valid for 6 months.
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