In the previous article we discussed several common public misconceptions about the reverse mortgage. The public needs a sound answer to such misconceptions before it can make a decision for the loan. So below we have mentioned the solutions to all the California reverse mortgage myths that were mentioned in the previous article.
1st Myth: Will the lender have the home ownership during the contract that includes reverse mortgage?
This is very famous and top of the list misconception amongst the industry and a lot of the senior citizens need to get this cleared. Moreover, it is also one of the very common myths in the industry as well. So even though if you take out a loan still you will be responsible for your apartments maintenance, its use, taxes and all the home insurance fee.
There is no escape from any of the above mentioned bills as you still have to pay them yourself. So especially for California citizens the California reverse mortgage does not cover any of the above mentioned expenses and the home owner has to handle them himself.
2nd Myth: Will my heirs pay for the loan after me?
The important thing about California reverse mortgage loans is that they are not resource loans. The lender of the loan can only recover his investments after the apartment or property is once sold. Moreover, you are also only answerable to the lender in certain limits. Even when the loan has been once paid by the lender you still won’t owe him any extra value than the actual value of your home. This is the major reason why you need to have these myths clarified beforehand.
3rd Myth: Do I need to have a 0% debt in order that I qualify for the California reverse mortgage loans?
This misconception is entirely wrong. And a fragment of the loan amount can also be used to pay for other loans that you might have taken in the past. Yes you are entirely free and can do whatever you like with the remaining amount but our experienced advice would be to use the amount wisely.
4th Myth: Do I need to have a good credit balance before I apply for the reverse mortgage loans?
This misconception is 100% wrong. No matter how great credit balance you have regardless of your California reverse mortgage, you are still applicable for the loan. Moreover, the only thing the loan agencies check for is your debts and property taxes. If they are also outstanding as well then are surely applicable. That is why you need to take this misconception out of your head if you want to get a California reverse mortgage loan.
You’re not the first to be in such a position … We have assisted many individuals in your current situation.