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Reverse Mortgage Counseling
Informed Minds Make Smart Decisions!WHAT is a Reverse Mortgage?
- A reverse mortgage is a type of home loan that allows you to convert a portion of your home equity into cash.
- Unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower no longer uses the home as their principal residence.
- The amount you can borrow is based on your home value, not your income or your credit score.
WHY Reverse Mortgage Counseling?
- It is mandatory that you attend Reverse Mortgage Counseling to be eligible for a HECM loan.
- A reverse mortgage is an important financial decision and one you should make with the proper information.
WHAT will our Counseling Provide?
- A 60-minute minimum counseling session, face-to-face or via telephone, with a HUD-Authorized HECM Reverse Mortgage Network Counselor.
- A thorough explanation of what a reverse mortgage is, as well as its advantages and disadvantages.
- An initial screening of your eligibility.
- An assessment of risk factors as it relates specifically to you.
- An evaluation of the financial impacts of the loan as it relates specifically to you.
- A detailed loan analysis including a break-down of all costs and financial implications associated with a reverse mortgage.
- A review of the borrower’s responsibilities throughout the life of the loan.
- Information on alternative options that can be used as a substitute for a reverse mortgage, or used in conjunction with one.
- An ongoing relationship with a counselor for any future questions.
HOW do I Qualify?
- Must be a homeowner 62 years of age or older.
- Must maintain your home as your primary residence.
- Must be able to use the proceeds of the loan to pay off any existing home debt.
Foreclosure Prevention Fairs
A project of Los Angeles Neighborhood Housing Services, Inc. Last year, over 35,000 families lost their home to foreclosure. Unfortunately, 2009 looks like it is shaping up to be like last year.Encourage your family, friends and stakeholders to attend a FREE foreclosure prevention fair. Last fiscal year, LANHS helped 4,733 families submit a loan modification for free.
Several lenders/services such as Chase, IndyMac and Wells Fargo will be on hand to provide on-the-spot loss mitigation services. HUD certified counselors will also be available to counsel families. No one should pay for a loan modification! You may sign up for a Foreclosure Prevention Fair by calling 888-895-2647. For a calendar of upcoming Foreclosure Prevention Fairs go to: http://www.lanhs.org You must bring:
- Income documentation: pay stubs, W2s and bank statements (if self employed)
- Your most recent mortgage statement & any other related correspondence
- Your most recent two (2) years' tax returns
- A list of your monthly expenses