Are Reverse Mortgages Safe?
Absolutely! On the eve of his departure as FHA Commissioner, Brian Montgomery told an audience at the National Reverse Mortgage Lenders Association conference in Los Angeles that he too is a huge proponent of the FHA insured reverse mortgage. Montgomery, recalled telling his mother of the financial tool's practicality for seniors. "I told her that I was her son and would always be looking out for her best interests. I also told her that I administered this program for the United States of America and thought it was a pretty good idea"
So, if it's good enough for the FHA Commissioner's mother, shouldn't it be good enough for you or your loved one? Just take a look:
A homeowner will continue to own the home
The homeowner’s name stays on the title – the bank will not own the home
There are no monthly payments
No loan repayment until the homeowner permanently vacates the home If the home is valued at less than the amount of the Reverse Mortgage, the homeowner is NOT responsible for any balance Conversely, the homeowner is entitled to any equity left after the loan is repaid
Reverse Mortgages are strictly regulated by government and industry associations like Fannie Mae and NRMLA (National Reverse Mortgage Lenders Association)