My lender told me there is a seven day cooling off period before my appraisal can be ordered. What is that about?
This is a very interesting question! Basically what our law makers want to do is give seniors a little more time to decide if a reverse mortgage is right for them after they have had their mandatory counseling session and before any services are ordered. There is a seven day, and we are talking business days, wait period before a senior can proceed with their loan.
It sounds good on the surface, but what I have seen from a Reverse Mortgage Specialist point of view, is that this further delays funds available to the senior. Most seniors get advice about a reverse mortgage from friends and/or family before they move forward in speaking with a reverse mortgage loan officer. Eighty percent of the time, the senior knows that they want a reverse mortgage before they ever make an appointment.
Once they make the appointment with a Reverse Mortgage Specialist, they are then told they have to have mandated counseling to make sure they understand how the loan works. From there, there is a seven day wait period, called the cooling off period, where they can sit and ponder the benefits versus the risks of the reverse mortgage.
This law was signed into effect by Governor Jerry Brown on September 30, 2014 and made active on January 1, 2015. For more information click HERE.
So, sit back, enjoy the seven business days, and then we can be back in business processing your reverse mortgage and getting the money that you need to you as soon as possible.
For questions regarding reverse mortgages in Fresno or anywhere else in California, please contact me directly at 559-994-3692. You can also find more information on my website by clicking HERE.
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