Reverse Mortgages:  Process

We are highly experienced in the process of applying for, and receiving, a reverse mortgage. We have done hundreds over the past decade. Virtually all seniors who have applied with us have received their money. There are no last minute surprises with us or, even worse -- disappointments. Success requires a joint effort between us and you. Here's what we contribute:

Communication. We listen to your needs and objectives - not just talk. We ask questions, and then actually stop talking. A reverse mortgage isn't exactly right for everyone and there are some other options. We never take a one size fits all approach.

Experience. You don't want to be any lender's first customer. We have a long list of references who will be happt to talk with you personally about their experience. At Your Home For Life, our Reverse Mortgage Specialists are just that.

Accountability. We live and work in the same New England community as you. Earning your good will is what we do every day. We will answer your questions honestly and directly. Please read our Code of Conduct.

Here is our standard 9-step reverse mortgage process:

1. Initial Research. Talk to your advisors, analyse your financial situation and utilize the resources and background material that we provide.
2. Attend our Seminar. They are very educational in nature and allow us to address your own speciffic situation.
3. Personal Consultation. Set up a free, no committment, in-home consultation with you and your trusted family members or advisors
4. Get HUD Approved Counseling. A HECM requires free independent third party counseling from an approved HUD counselor, in person or over the phone. We can refer you or see the HUD national counseling network list.
5. Apply. We will need a few pieces of information from you, and will need to order an appraisal. Certain situations require flood insurance and a pest inspection. If your home needs repairs to meet HUD standards, we'll detail the needs for you. We'll fill out all the paperwork for you. You receive a copy of all forms, including those you sign at closing. You, your attorney or trusted advisor can review them in advance.
6. Sit back and RELAX. It typically takes 30-45 days to process the application. We will keep you posted regularly and be in touch with you every step of the way.
7. You're Approved! Now it's time to finalize the details, review the numbers and make sure the tax-free cash will be flowing to you exactly as you like.
8. Closing. We bring the attorney right to you. Closings typically take place right in your own home! The Federal Right of Rescission grants you 3 business days to cancel the transaction if you choose.
9. Enjoy Financial Independence. You will never have to make a payment for as long as you live in your home as your primary residence. All the benefits you have learned about the Reverse Mortgage product are true. You have made a good decision.

After the Closing

• You will receive a copy of all documents.
• Any pre-existing mortgage will be paid off.
• You will receive a check for whatever amount you requested.
• If you requested additional monthly payments, they will arrive by check or direct deposit once a month - just like your social security payments.
• You will receive a monthly statement listing your balance, line of credit and all changes to that balance or line of credit.
• You will receive a phone number to call for questions, to request money, or to change your payment options.
• You can switch your payment choice at any time for a nominal fee.

Repayment

• You can pre-pay your reverse mortgage at any time without penalty.
• The mortgage is legally required to be paid off within 12 months of the last borrower ceasing to live in the home full-time.
• A borrower who goes to a nursing home for less than 6 months and then returns home is still considered to live there full-time.
• Borrowers must live in the home at least six months every year to be considered full-time.
• Once you have drawn down the full line-of-credit, no further funds can be accessed.
• However, if you have selected the annuity option, it will continue until the last borrower dies or the mortgage ends, whichever comes first.
• Your reverse mortgage can be re-financed. The only fee required is mortgage insurance for the amount of the increase in principal limit.
• You or your estate can pay the reverse mortgage through sale of the house, taking a conventional mortgage, or simply providing funds from elsewhere.
• Any tax deductions for interest paid can be used in the year you pay off the mortgage. Consult your tax adviser.
• If the net home value at time of sale is less than the reverse mortgage balance, you or your estate are not liable for the deficiency. It is paid for by HUD.
• In the highly unlikely event your lender cannot make your promised payments, HUD will step in and make them instead. That's what your HUD insurance is for.