Q: I am a retired school teacher and my house in Tamarac FL recently went into foreclosure. I am terrified of being put out of my home, seeing as I am on a very meager fixed income and rent prices are ridiculous. A friend of a friend told me that if I have enough equity in my home that I could possibly refinance my house into a reverse mortgage. I have heard many horror stories about the reverse mortgage, so I wanted to ask a professional; is a reverse mortgage a scam?
A: We are not in the mortgage business here, but what we can tell you is that the Home Equity Conversion Mortgage (commonly referred to as a Reverse Mortgage) is a mortgage product that is insured by the Federal Housing Authority (FHA) which is part of the U.S. Department of Housing and Urban Development (HUD). That said, it is indeed a legitimate loan product for those that qualify and it can indeed provide an excellent alternative for older homeowners with equity in their homes that are facing foreclosure.
However, though the mortgage industry has been cleaned up quite a bit over the past decade, one can never be too cautious of potential predatory lending scams. So it is always in your best interest to have an experienced real estate attorney review any and all loan documents, prior to executing any mortgage agreement, to ensure that you are not the next victim of a predatory lending scam. Call the Law Office of Brian P. Kowal, PA at (954) 990-7552 and allow us to watch out for you!