Uncovering Reverse Mortgage Myths & Misconceptions

Have you been considering a reverse mortgage but are just afraid of some of the negative things you've heard? There are some negative myths that senior borrowers have heard about this type of financing that simply aren't true and we're going to expose some of those here.

Myth #1 The Lender gets my house. This is not true. You own your home and the lender records a lien, just like a forward mortgage. The difference is that instead of borrowing money and then making monthly payments on the money, the lender gives you money against the equity in your home either all up front, in monthly payments, as a line of credit you can use when you want, or all of the above. You make no monthly payments and the interest accrues until the loan is paid in full. When you sell the home, stop living in it as your primary residence or the last borrower on the mortgage passes, the loan and all interest becomes due and payable (there are also some second home programs available). You (or your designated heirs upon your passing) retain title to your property.

Myth #2 I don't have good enough credit to get a loan. There is almost no credit qualification for a reverse mortgage. On the government Home Equity Conversion Mortgage or HECM, the only requirement is that you cannot be delinquent on a federal obligation such as an FHA loan, Federally Insured Student Loan, Federally Insured SBA Loan etc. If you have declared bankruptcy, you are still eligible for a HECM reverse mortgage. If you are currently on a bankruptcy payment plan, you can still qualify if you have a history of 12 months or more of making the plan payment. You can even get a reverse mortgage if you are currently in foreclosure!

Myth #3 My house has to be paid in full to get a reverse mortgage. Some seniors get a reverse mortgage to augment their income and do start with homes that are paid in full or have loans with very small balances, but some seniors take a reverse mortgage just so that they can pay off their existing financing and never make another loan payment for life. In fact, some loans go to people who bring in cash to close the loan, just to stop all payments for life.

Myth #4 A reverse mortgage will affect my social security benefits. Reverse mortgages do not affect a senior's social security benefits. We recommend that seniors consult with a trusted financial advisor because need-based programs such as Medicaid, can be affected if the reverse mortgage is not administered correctly. However, retirement programs, social security and taxes are not affected and this should not stop seniors from getting the help they need to stay at home if that is what they desire.

Know Your Rights About Debt Collection Abuse

If you are behind on paying your bills, or you have fallen into a situation where a debt collector has started to contact you, then it is important to know your rights to avoid debt collection abuse.

Debt collectors are bound by the rules and regulations of the FDCPA or the Fair Debt Collection Practices Act. This act states that collectors cannot use abusive, unfair or deceiving practices in their attempt to collect money. This act governs anyone that collects money that is owed on a regular basis. This would include collection agencies, lawyers that regularly collect debts, and companies that buy debts.

The FDCPA covers debts that are considered personal debts. This would include things like credit card debt, a mortgage, or medical bills. The act does not cover any debt that was a result of a business venture or business expenses.

There are rules for debt collectors about when they can contact you, and it is important to know and understand these. They may only contact you during convenient times which are after eight in the morning and before nine o'clock at night. They also may not contact you at work if you serve them with a written or verbal notice.

Debt collectors have a job to do, but often times people want to know if there is a way to keep them from contacting them altogether. The only way to do this is by drafting a letter and sending it directly to the debt collector. The letter needs to be sent by certified mail, and you should get some sort of receipt to prove the collector got the letter.

You are still responsible for the debt owed, but the collector should not have any more contact with you. They are allowed to make contact one more time to inform you of any action that a creditor might be taking against you.

There are certain practices that are off limits for debt collectors. The more you understand these, the better chance you have of stopping a collector from using them on you. 

• Collectors are not allowed to harass you in any way.
• They cannot make any threats, or repeatedly call you to get on your nerves.
• They also are not allowed to make any false statements.
• They cannot misrepresent themselves or the amount of money that you owe. Collectors are also not allowed to tell you that you will be arrested or talk about any legal action that might result from you not paying your debts.

If you feel that a debt collector has violated any of the practices that are outlined in the FDCPA, then you need to report it to the Attorney General's office or the FTC. You have one year from the date of the occurrence to file any complaints.

Texas Mortgage Loans

Texas Mortgage Loans with Savings Road-The Path to the Ideal Mortgage Loans

Buying your own house is a dream that we all foster. And to fulfill this dream, you might have to get your finances in order and apply for a mortgage loan. Put in simple terms, Mortgage Loans are loans that are secured by the real estate that the loan is allowing the buyer to purchase. There are many confusing and complicated facts and figures involved in deciding which loan suits you best and further in applying for a loan. There are numerous options available, and to judge what fits your requirements best might be a daunting task. The terms of mortgage loans for different loans are different; in fact home buyers have access to different types of mortgage loans and a number of lenders who offer different packages and terms. At the same time, the functioning and legal effect of mortgage loans varies somewhat from state to state. We at Savings Road can provide access to information on mortgage loans in different places including information on Texas mortgage loans and can further assist you in picking the mortgage loans that are perfect for you.

A word of caution

With so many different types of mortgage loans and cheap mortgage loans available, a borrower planning to invest in Texas such as the Houston real estate market, the borrower may just get overwhelmed and consider a loan program that sounds simple and familiar. Also with the so many options available for the Houston real estate market, from single house homes to condominiums, a borrower might not know what Texas mortgage loans to pick. At the same time, a Texas home mortgage loan lender in the Houston real estate area might take advantage of the situation by only enumerating the benefits of the mortgage loans that he offers. He might avoid discussing the disadvantages of the Texas mortgage loan touching the Houston real estate in question. As a result, a borrower might get taken in and actually end up picking the wrong mortgage loan.

Numerous options for Texas mortgage loans

Applying for a Texas home mortgage loan or a mortgage loan for any other area can be both stressful and exciting. The options available for mortgage loans Texas are numerous, at the same time the packages for Texas home mortgage loan offered by lenders are also one better than the other. As a result, taking a decision regarding a Texas mortgage loan can be difficult for a first time borrower or even for a person considering refinancing their home. To simplify the process of selecting mortgage loans Texas that are ideal for your requirements, our experts take your financial situation into consideration, analyze it and then advise you on the Texas mortgage loans that are ideal for you.

There are a number of different factors that need to be considered when you apply for a Texas mortgage loan be it for Houston real estate, or a loan for any other area in Texas. Just picking cheap mortgage loans might not be the best choice that you make. At the end of it, it is the long term effect that the Texas mortgage loan taken for the Houston real estate property will have on your financial stability that determines whether it is right for you or not. We at Savings Road provide expert advice on your Texas home mortgage loan that can help you in making the correct decision. You can garner information from our experts who specialize in mortgage loans Texas. These experts tailor information specifically according to your needs, goals and budget on the basis of the knowledge that they possess about mortgage loans Texas. As a result, with the vast knowledge and information presented, you can take a decision regarding the mortgage loans Texas that suit you the best.

Proper guidance to secure the ideal loan

We at Savings Road can help you in putting things in the right perspective and on the basis of our knowledge can help you in understanding the different types of mortgage loans that are available. We can also help you in narrowing down to mortgage loans that would be ideal for you while also providing information on the cheap mortgage loans available from different lenders.