The No Fee Zone
June 17th, 2008
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When it comes to reverse mortgages there are times when lenders can say “show me the money” — and times when they can’t.
The usual rules prevent lenders from charging any fees related to reverse-mortgage financing before borrowers receive counseling. That means:
___No FHA case number can be assigned (because there is no FHA loan to process at this point)
___No fees for reverse-mortgage applications
___No fees for appraisals
___No fees for credit reports
___No fees for title searches
For seniors, of course, several questions emerge:
What fees — if any — can be charged prior to counseling or as a result of counseling?
Where can you get independent counseling that meets your needs?
How is the counselor or counseling service compensated?
In considering counseling services, remember the goal for seniors is not “free” services, the goal is to get the best counseling possible given your particular circumstances. If that means you need to pay a counselor such as an attorney who specializes in elder law or a fee-only financial planner, that’s fair and that’s fine.
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