In its latest coverage of reverse mortgages, the Huffington Post addresses one facet of the borrowing process: Reverse mortgage counseling.
In its look into the counseling process, NowItCounts contributor Michael Lazar details what happens during a typical session.
“The goal of this counseling session is to provide borrowers with unbiased information and advice prior to them committing to this reverse home loan situation,” the article writes. “This helps you better decide if a reverse mortgage makes sense for your situation, while avoiding putting you under the pressure of banks and loan officers to close on the loan.”
Lazar then goes over the topics that will be covered in the session. Some of the information is accurate, although he cites some misinformation about counseling, such as “Some states allow you to do this over the phone, but most mandate that this session takes place in-person.” [Editor’s note, North Carolina and Massachusetts require in-person counseling for some clients; in most states phone counseling is sufficient.]
Among other topics, he notes a discussion of terms and local conditions, necessary home repairs, payment options, income and expenses.
“Bear in mind that the goal of this session is to educate, not convince,” he writes. “It’s you who will make the decision in the end.”
Written by Elizabeth Ecker