Things You Need to Know About Reverse Mortgage

 Reverse Mortgages are perfect for you if you are in your ripe years and need some cash flowing. They are loans you take based on the value of your house or property. This could be a one-time loan or an evenly distributed monthly cash flow. You do not have to return it right away. It’s repaid when you move away or when you die and the property is sold. Although they sound very interesting, reverse mortgages are not for everyone.

For real estate attorneys, educating people on the misconceptions about reverse mortgages is a herculean task since TV ads create a lot of false impressions about reverse mortgages amongst its viewers.

Reverse mortgages are not for everyone. Here are a few things you should know if you are planning on getting a reverse mortgage for your property:

1. Understand that TV ads can be deceiving as they might not cover all the extra costs. There are plenty of extra fees that you might have to pay. Like for example, you might have to pay the mortgage insurances, taxes, and other fees related to homeownership. Irregular payments or failure of payments can lead to a default and an immediate repayment of the loan will have to be made.
2.  Consult a real estate attorney. Real estate attorneys will tell you the benefits and disadvantages. Most often people hesitate in consulting a real estate lawyer because they feel, ‘Real estate lawyers are costly for me’ or ‘I don’t know how to find a good real estate attorney near me’. Remember that the effort and cost you put into a real estate lawyer is much lesser than the cost you might incur if you trust a wrong organization or sign a faulty deal.
3. Understand how much funds you are entitled to after drawing the equity. While signing the reverse mortgage, you decide on what portion of your property you’d take a loan on. Based on the amount you draw, interest is calculated. You can decide when you will draw the amount too. When you or your kin sell the property, the interest and equity you withdrew will be deducted from the total sale amount and the remaining profit will be handed to you or your kin.
    Even if you apply for a reverse mortgage, you still retain the ownership of the house. Any charges that are incurred as the house owner, will be paid by you.
4. Check and Re-check the authenticity of your lender. Any place that involves money, attracts frauds and scammers inevitably. If you are suspicious about your lender, file a complaint and let your attorney know. Let the Federal Trade Commission take care of them.
   

Finding a Real Estate Attorney in Fort Myers

If you want to understand reverse mortgages more or even get one for your property, call us on 239-931-6767. At Hale Law Services we can assist you with all real estate transactions like reverse mortgage, foreclosures, etc. Call us now!