Reverse Mortgage Seminar – Share this with your seniors!
This morning council member Barry’s office held a reverse mortgage seminar in his offices. The session was born out of the prevalence of these type of mortgages in Ward 8 and the complaints the council members office have received related to the like. Several members from HUD and DC Housing were in attendance. Fantastic information came out of the session and if any readers or their family members are considering this, here’s an outline of what we learned to provide guidance. Please use the resources to do this the correct way.
- A Home Equity Conversion Mortgage (HECM) will pay you money vs. you paying into a mortgage
- HECM mortgage never has to be repaid by the individual whose name it’s in. The mortgage is paid back in two instances:(1) the person moves from the home and sells it. (2) The person dies and the estate pays back the mortgage. If there is a deficiency, then the lender has the right to go back to the FHA to get paid – from the property insurance on the loan.
- HECM mortgages accru interest.
DC Housing Counseling is the only FHA approved service for reverse mortgages in the city. HUD housing counseling services are equipped to provide resources for HECM and other housing related products. Here’s how the process should work:
- Senior decides they may want a HECM mortgage.
- Schedule an appointment with a certified housing counselor.
- Senior communicates with the counselor. Information shared will include: what you are trying to get out of the mortgage, needs and circumstances etc.
- Participate in counseling sessions.
- Get a certificate of completion.
- Follow-up – counselors will follow up and provide any additional assistance.
The options they provide ONLY apply to FHA mortgages. If the HECM is done on a conventional mortgage – legal entities will have to get involved to settle disputes.
Need more information? Contact Housing Counseling Services at:
2410 17th St. NW Ste 100
Ph: 202-667-7006 or 202-275-9200