All you ever wanted to know about Colorado reverse mortgages -

I don’t have a job, can I still get a reverse mortgage in Colorado?

Yes, since there are no monthly payments required, no job is required. Different from a forward mortgage where payments are required and your equity builds, the reverse mortgage pays you and the equity diminishes.

Are there any other requirements of me before I get my loan funds?

In order to obtain a reverse mortgage in Colorado, a third party approved agency counseling session is required. Your loan office will set this appointment for you. You can choose to go to the counselor’s office or the session may take place over the phone. You should plan on the appointment lasting about an hour. The intent is to ensure that you are making an informed decision regarding the reverse mortgage.

What happens to the title to the property?

Title will always remain with the borrower.

I was told the reverse mortgage is a non-recourse loan — what does that mean?

That means that when you leave your home, or pass away, that you (or your estate) will NEVER owe more than what the home is worth.

Will I ever be forced to leave my home?

As long as your property remains the primary residence of at least one of the borrowers, reverse mortgage customers can NEVER be forced to move. Borrowers are required to keep the property taxes current along with keeping up with the maintenance on the property.

How do I receive payments from a reverse mortgage in Colorado?

Funds may be obtained in several ways … Colorado residents can request a lump sum, monthly payments, a line of credit or a combination of any of these options. Residents can change the way the money is distributed with a phone call.

Am I limited to what I can use the cash for on a reverse mortgage?

No, the sky is the limit. Many use it for dream vacations, investments, income supplementation, long term care, a new home purchase or whatever could be helpful to the individual and family.

Is there a good reference tool to help with my research on reverse mortgages?

Yes, AARP has a great book called “Homemade Money.” You can order from their website at www.aarp.com or call toll free at 800.209.8085.

Does it matter who I use as my loan officer?

Yes, in Colorado or any other state, you want to be sure you are working with an individual that understands your needs and wants for a reverse mortgage. Reverse mortgages are not for everyone, so working with an experienced loan officer will be beneficial. You’ll also want to know who will be servicing your loan. As in forward mortgages, you pay the investor — in this case the investor/service provider will be paying you and it’s imperative that you are working with a quality service provider. You will also want to check and see if your mortgage company and/or loan officer is a member of the Nation Reverse Mortgage Lenders Association … www.nrmlaonline.org.

For more information about Colorado reverse mortgages, contact me at (720) 641-3482.

This entry was posted on Monday, October 8th, 2007 at 11:17 am and is filed under Colorado Reverse Mortgage. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.