Why Counseling is Important for Reverse Mortgages
One of the best features about reverse mortgages is the mandated 3rd party counseling built into the program to protect the consumers, in this case seniors who tend to be targets for fraud. The counseling insures that you understand the program and review alternatives prior to applying for a reverse mortgage.
Some of these 3rd party agencies that provide counseling are the AARP (800-209-8085), the Money Management International (877-908-2227) and the National Foundation for Credit Counseling (866-698-6322). Counseling is required and can be conducted either face-to-face or over the telephone.
Counselors are required to review alternative options for seniors including housing options, social services, and health or financial alternatives. They must also review other home equity conversion options such as property tax deferral programs. Seniors must also know and understand the financial implications of entering into a reverse mortgage and the tax consequences affecting eligibility and the impact on their estate.
In Utah, we follow these same guidelines and emphasize the importance of understanding the advantages as well as the potential disadvantages of a Utah reverse mortgage.