KOREAN WAR VET LOSES HOME OF 32 YEARS AFTER GIRLFRIEND GETS A REVERSE MORTGAGE.
This is the headline I woke up to on Friday, April 2, 2015. The article is full of false and misleading information about Reverse Mortgages that I would like to take a moment to clarify for those who might have read this article and are confused.
1. Mr. Hamann has lived in this home since the mid-80’s. Based on this piece of data alone, I am sure Mr. Hamann knew that his girlfriend had got a reverse mortgage. She most likely would not have been old enough to get the reverse mortgage before Mr. Hamann moved into the home.
2. Prior to January 1, 2015, any senior aged 62 or older listed on the home title would have been protected under the Reverse Mortgage. From what the article says, Mr. Hamann and his girlfriend chose not to get married. Furthermore, the girlfriend chose not to add him to the title of her home. Perhaps she was saving the home for her children?
3. The article states that the bank owned the home. When you get a Reverse Mortgage you do not sign title of your home over to the bank. You still own the home. However, there may not have been any equity left in the home and as with any other home that is upside down the homeowner or heirs can turn the home over to the bank. Because a Reverse Mortgage is a FHA insured loan, the homeowner will never owe more than the home is worth.
4. Reverse mortgage counseling is required. I am sure Mr. Hamann’s girlfriend knew that Mr. Hamann would no longer be protected once she moved out of the home. She would have been advised of this.
The Reverse Mortgage is one of the safest loans available today.
Does a Reverse Mortgage Really Put Seniors Out of Their Homes?
Its a loan like none other. For the last 32 years, Mr. Hamann has been living in a home with no mortgage and probably enjoying a monthly tenure or line of credit. For not owning the home and not having to worry about rent or a mortgage he has done quite well for himself. You can read the article HERE.
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