Watch Out for Pushy Reverse Loan Salespeople

It’s important to choose a reverse mortgage loan agent who is willing to listen to your concerns and explain how these loans work. While there are knowledgeable reverse mortgage salespeople out there, be on guard for some red flags that may indicate you are dealing with an amateur or even a scam artist.

High Pressure Sales Tactics

You should never be pressured or coerced to sign up for a reverse home loan. Some reverse loan salespeople may use scare tactics to get you to borrow money, or make you feel like time is running out on signing up for a deal. Don’t feel pressured to apply for a reverse loan just because a salesperson says there is a deadline.

Borrowing against home equity is a huge decision that requires a lot of consideration. Discuss your concerns with a qualified reverse mortgage counselor who has passed testing approved by the Department of Housing and Urban Development (HUD). If a loan salesperson refuses to answer your questions or can’t explain how these mortgages work, look for one more experience.

Pushing Other Financial Products

Some reverse mortgage salespeople try to get you sign up for annuities or other financial products when you apply for a reverse loan. Think about it: first they want to charge you to release your home equity with a reverse loan, then they want to charge you to tie it all up again with an annuity. It makes no sense–except to the guy who gets commissions from both transactions.

Compare Reverse Loans

Avoid signing up with the first reverse mortgage company you talk to. Take time to gather reverse mortgage quotes from several lenders so you can compare all the fees and other details. If you feel uncomfortable with a reverse loan salesperson, trust your gut instinct and look for a different company.

Get Recommendations

Ask other people you know who have borrowed with reverse mortgages to recommend a company. You can also search for reputable lenders on this Web site.

This entry was posted on Tuesday, May 18th, 2010 at 8:19 pm and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.