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Reverse Mortgage Myths

The Bank DOES NOT own your home!

Sorting through the myriad of myths that plague the reverse mortgage program is an integral part of the education process. You may have heard some of these widespread misconceptions that are often spread by "sidewalk counselors".

Let's start with the
BIG one:

Myth #1 - The Bank Owns the Home

The most prevalent myth you will encounter is that a reverse mortgage gives the bank title to the home.

This myth is persistent because at one time it was true. Before we had HECMs (pre-1989), there were some proprietary products that exchanged ownership of the home for a cash payout. Some of these loans had time limits for tenure specified - one day somebody from the bank would knock on the door and tell you that is was time to move out of the "bank's house".

This is not the case with HECMs!

As with forward loans, HECM Reverse Mortgage loans place a lien on the property to protect the lender's interest. As with forward loans, the borrower is on title and retains control of the home.

Should the borrower decide to sell the home, or the heirs sell the home after the borrowers have passed away, the lien must be satisfied with the proceeds. All remaining equity belongs to the borrower or their heirs.

Image - The Bank does not own your home when you have a HECM Reverse Mortgage
 
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A Non-Recourse Loan
It's Your Money
HECM for Purchase

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First Federal
Savings Bank
NMLS 402963
1880 S Eagle Rd
Meridian, ID 83642

dcook@bankfirstfed.com
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Home | HECM Basics | 12 Facts | Borrower Qualifications | Loan Process | Financial Assessment
Who Owns the Home? | Who Owns the Equity? | When is the Loan Due? | A Non-Recourse Loan | It's Your Money
| HECM for Purchase |
Copyright© 2019 Doug Cook FDIC & Equal Housing Lender Logo
HECM borrowers are responsible for the payment of property taxes, homeowners insurance, and the maintenance of their home. Rates and fees vary by lender. All credit products subject to approval. Information presented was not created or approved by HUD/FHA.
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First Federal Savings Bank | 1880 S Eagle Rd | Meridian, ID 83642
Institution NMLS: 402963

www.MortgageFirstFed.com/dcook
www.BankFirstFed.com

First Federal Savings Bank provides HECM Reverse Mortgage lending in the states of
Idaho, Oregon, Washington, Montana, Wyoming, Utah and Nevada.
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