Financial Freedom Reverse Mortgage Review (2022 Update)

October 6, 2021     28 comments

At one time, there were quite a few major bank lenders offering reverse mortgages. In fact, in the early 2000s, the majority of reverse mortgage loans were closed by national banks. One of the large bank lenders was Financial Freedom, which most recently operated under the parent company CIT Group, and previously was owned by OneWest Bank and IndyMac. At its peak, the company originated more than 11,000 reverse mortgages annually and held the title of top wholesale lender. Summary: • Financial Freedom at one time was the largest... Read Full Article

Here’s the Real Truth About Reverse Mortgages (No BS)

October 1, 2021     15 comments

A recent comment from our reader: To whom it may concern: I have read so much reverse mortgage info. It sounds like it is not really to help you but for the bank to help themselves. It is designed to make you think they are helping you, but the truth is you are really giving away your home. You are selling it to them for a very low price. If you get the reverse loan in Dec. 2019 and die in Jan. 2020 you have lost your home, you... Read Full Article

Purchase 2-4 Units with a Reverse Mortgage for Lifetime Cashflow

September 30, 2021     12 comments

For retirees considering a move in their later years either to downsize or to be near family or friends, there’s a government insured loan available that allows them to take out a reverse mortgage and purchase up to 4 units in a  single transaction. The Home Equity Conversion Mortgage (HECM) for Purchase allows borrowers who are 62 or older to draw down on the equity in their homes over the course of the loan while purchasing a new home. Contrary to a “forward” or traditional mortgage where the loan... Read Full Article

What Happens When a Reverse Mortgage is Assigned to HUD

September 29, 2021     23 comments

We received a notice from reverse mortgage that the loan is being assigned to HUD they also gave the name of company that would be handling it. I looked company up and they have horrible complaints one main one being that the heirs do everything required to settle home and this company just foreclosures the house before they can do anything about it! I am beneficiary of my mom’s house she has the house in a trust and a will, I am beneficiary we put house in trust to avoid... Read Full Article

Can You Leave Home With a Reverse Mortgage? Expert Q&A’s

September 29, 2021     76 comments

Carol wrote: Regarding the rule that the homeowner has to reside in the home: how long could that homeowner be absent (e.g. on an extended vacation) before they would be considered not residing in the house. Would they be allowed to have someone else living in the house to care take? Carol, Hi and thank you for your questions. I am going to start with the second question as it is the simpler question to answer without reservations. The reverse mortgage does not prohibit a borrower from having anyone... Read Full Article

Skip the Reverse Mortgage Tenure and Go For Growth!

September 29, 2021     10 comments

If you’re thinking about taking out a reverse mortgage, it’s important to understand all of its unique features. Did you know that the federally-insured home equity conversion mortgage (HECM) program has a loan payment option that actually grows over time, thereby increasing your borrowing capacity? The HECM program allows homeowners aged 62 and older to access the home equity they've built up in the form of a non-recourse loan. As a borrower, you can spend your loan proceeds however you see fit, but you are required to stay current on... Read Full Article

Kosher Reverse Mortgage for Veterans by Jack Guttentag

September 29, 2021     2 comments

We had a “unique” caller leave us a message who questioned us on an endorsement we had received from Jack Guttentag, known to many as the Mortgage Professor. Seems she felt that this was a scam and she contended that Guttentag meant good day in German and that this meant that it could not be Jack’s real name or that he could not be a real person as a result. This lovely lady, in her profanity laced rant ended with an “F-bomb” because she felt that we were trying to... Read Full Article

Using a Reverse Mortgage Purchase for New Construction

September 28, 2021     18 comments

Can you have a contractor build a brand new home for you and finance it with a reverse mortgage upon completion? Thank you -Bob Good Afternoon, The short answer to your question is, yes you can. However, there are several things that you really need to keep in mind when you undertake such an action and I feel that I would be remiss if I didn't tell you some of those items. There are a couple of different ways that a contractor can build a home for the end... Read Full Article

4 Times a Reverse Mortgage is a Bad Idea (or even terrible!)

September 28, 2021     11 comments

A reverse mortgage can be a very viable solution for the right homeowner—one who is primarily seeking a way to effectively age in place. Available to people who are age 62 or older and have built up a substantial amount of equity in their homes, reverse mortgages allow borrowers to wipe out their mortgage payments and can also serve as a means to generate additional cash flow in retirement. But reverse mortgages are not right for everyone. Here are some telltale signs that another financial solution may be a better... Read Full Article

6 Questions to Ask Your Reverse Mortgage Loan Officer

September 28, 2021     4 comments

You’ve made the decision to pursue a reverse mortgage and now you’re meeting with a loan officer for the first time. Though you may understand the basics of a reverse mortgage, there are certain questions you may want to bring with for your first meeting to clarify some of the details that could potentially catch you off guard down the road. Here are a few questions to address in your first meeting with your reverse mortgage loan officer. How do I get counseling? Before you can apply... Read Full Article