Friday, November 17, 2017
 

How Does A Reverse Mortgage Work? Steps To Getting A Reverse Mortgage

1. Awareness

Homeowner learns about reverse mortgages from a news article, advertisement, word of mouth etc.

2. Upfront Education

Homeowner contacts a reverse mortgage lender to learn more about reverse mortgage programs. Request a reverse mortgage calculator or complete free, no obligation analysis from Kaye Financial.

3. Counseling

Homeowners seek counseling from a local HUD approved counseling agency, or a national counseling agency, such as AARP (800-209-8085) Money Management International (MMI, 877-908-2227) or National Foundation for Credit Counseling (866-698-6322). Counseling is required for all reverse mortgages and is conducted by telephone.

By law a counselor must review (1) options other than a reverse mortgage that may be available to the prospective borrower, including housing, social services, health and financial alternatives (2) other home equity conversion options that are or may become available to the prospective borrowers such as property tax deferrals (3) the financial implications of entering into a reverse mortgage and (4) the tax consequences affecting the borrower’s eligibility under state of federal programs and the impact on the estate for his or her heirs.

4. Application/Disclosure

Homeowner fills out a loan application and selects a payment plan, whether fixed monthly payments, lump sum payment, line of credit, or a combination of these. Lender discloses to homeowner the estimated total cost of the loan as required by the federal truth in Lending act. Homeowner provides lender with required information, including verification of Social Security number, copy of deed to home, information on any existing mortgage(s) and counseling certificate.

5. Processing

Lender orders an appraisal, which the homeowners pays for, to place a value on the home. The appraiser makes sure the physical condition of the property meets the FHA guidelines. If any structural defects are found, the homeowner must hire a contractor to complete the repairs after the reverse mortgage closes.

6. Underwriting

After receiving all pertinent information and data, lender finalizes loan parameters with home owner (i.e., determining payment option, frequency of loan interest rate adjustments) and submits loan package for final approval. It can take anywhere from 4-8 weeks (sometimes sooner, sometimes longer) to underwrite a loan package.

7. Closing

If the loan package is approved, closing (signing) of loan is scheduled. Interest rates are calculated. Closing papers and final figures are prepared. Closing costs are normally financed as part of the loan. Lender or title company has homeowner sign the loan papers.

8. Disbursement

Homeowner has three business days after signing papers in which to cancel the loan. Upon expiration of this period, the loan funds are disbursed. Homeowner accesses the funds in the form of payment option selected. Any existing debt on the home is paid off. A new lien is laced on the home. The homeowner may use the loan proceeds for any purpose. The loan “servicer” manages the account and is responsible for disbursing monthly payments to the homeowner (if this option is chosen), advancing line of credit funds upon request, collecting any repayments on the line of credit, and sending periodic statements.

9. Repayment

Homeowner doesn’t make any monthly payments during the life of the loan. The loan is repaid when the homeowner ceases to occupy the home as a principal residence. The loan may be repaid by the homeowner or the heirs/estate, with or without a sale of the home. The repayment obligation cannot exceed the home’s value or sales price.

Kaye Reverse takes care of Reverse Mortgages for its many senior clients in Michigan. To see if a reverse mortgage is right for you and you are a Michigan homeowner log onto: http://www.kayereverse.com/dvd.html and get the FREE DVD.
 

How I Dispute Credit Report Errors – Part 1

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Dispute Credit Report – Online Or By Mail?

Are you filing a credit dispute to challenge and remove incorrect information from your credit report, and wondering if you should file your dispute online, or with the old-fashion US postal mail? In short you should file your dispute through certified US postal mail.

You should do this because it will provide you documentation and evidence that you did send the credit bureau your dispute. We discourage you from filing your credit dispute online or by phone for a few reasons.

The first reason is because you have no proof or documentation that you even filed a credit report dispute. The second reason is because the credit bureaus have always had a less than dispute friendly policies. In other words we don’t trust that the credit bureaus will properly respond to an online dispute or if you file it by phone.

The Credit Bureaus Questionable History

Many consumers incorrectly believe that the credit bureaus are somehow part of our government or affiliated with the US government. The only relationship our government has with the credit bureaus is to regulate their behavior.

The reality is credit bureaus are private businesses (with stockholders) and they generate huge profits. Credit reporting is a massive industry with each of the major credit bureaus annually earning hundreds of millions of dollars.

The credit bureaus generate revenue by selling your credit report to lenders, insurance companies, employers… Every time someone checks your credit report the credit bureaus cash register rings.

However when the credit bureaus investigate a consumers credit report dispute they do not generate any money, and instead are only spending money. In other words it is not in the credit bureaus financial interest or their stockholders interest to investigate consumer credit report disputes.

The one and only reason the credit bureaus will investigate your dispute is out of fear that they will have to pay yet another fine to the FTC. Yes, that is correct the credit bureaus have been fined many times by the FTC, for not investigating and fixing credit mistakes.

The most outrageous of these violations is when the US government required the credit bureaus to set up 800 numbers, so consumers could call in and file a dispute. The bureaus complied and set up these 800 numbers and consumers began to call.

The missing key was our government did not require the credit bureaus to actually hire employees or even staff people to answer this 800 number. There are reports of individuals waiting exorbitant hold times and finally the FTC stepped in and assessed a fine to all three of the credit bureaus collectively, a total of $ 1 million dollars.

Congress passed the Fair Credit Reporting Act which regulates and governs the credit bureaus. This piece of federal law is what gives you and every US citizen the right to dispute any item that you believe is incorrect on your credit report.

This law was originally passed in 1970 as even at that time in history your credit report was a very important document. This law also says that the maximum amount of time an item can remain on your credit report is for 7 years. It also gives you one copy of your credit report from each credit bureau for free, every year.

However you choose to proceed with your credit dispute be it online, over the phone or following our suggestion and using certified mail, you can remove negative items on your credit report. Items get removed every single day and without just waiting 7 long years. If you experience any difficulty we encourage you to consider a credit repair attorney to help you succeed with your credit dispute and remove bad credit!

For more about how to dispute credit report and how to fix credit score and end the expense, frustration, and humiliation of a bad credit score visit us or call 1-800-298-4297 for a free credit analysis.

More Dispute Credit Report Articles

 

FICO scores and credit bureaus

Do you realize who controls credit? Why is credit much more crucial than money? How do an individual win in the present culture if they are residing in poverty? Is-it fair for the credit history to be utilized as a measure of personality and suitability for employment? What exactly is the true cause of retailers’ and supermarkets’ commitment cards? The answers to those so a number of other intriguing concerns are revealed by Corey P. Smith
http://www.coreypsmith.com

 

3 Ways to Quickly Grow Your Credit Score (100 Points)

Need help? Sign-up for the Live Richer Challenge: Credit Editon, here: http://signup.lrccredit.com/livericher/

The LIVE RICHER Challenge: Credit Edition (sponsored by Magnify Money), is a FREE, online financial challenge created by The Budgetnista to help women raise their credit scores and clean up their credit reports in 22 days.

 
 
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