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REVERSE
MORTGAGES:
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SNAPSHOTS
A Great Opportunity for
Seniors Who Want to Stay
in Their Homes
By Ozzie Jacobson
Not familiar with reverse mortgages? You should be. A growing number of
Seniors have been buying these innovative loans in recent years to augment
retirement income, pay for long term health care, or even pay for that
,drearn-yacation.. According to HUD, the number of reverse mortgages
issued this year has more than quadrupled from the early 1990s, when the
products were first 'introduced.
.ConsIder that there are over 20 million seniors with more than $2 tril-
lion in home equity; according to 2000 census figures, and you will begin to
appreciate the groWth opportunity these unique loans offer.
Reverse Mortgages Explained
Reverse mortgages enable senior homeowners 62 years or older to con-
vert part of the equity in their home into tax —free income without having
to sell the home, give up title, or take on -a new monthly mortgage payment.
Borrowers will never be forced to leave their homes, providing they make
their real estate property tax and insurance payments.
Fighting Myasthenia. Gravis
Jean Sosin of Bloomfield Hills and friend Arnold Yerman are
shown at the Myasthenia Gravis AssociatiOn's Sosin Awards din-
ner on Nov. 4. The Sosin Award honors selfless giving and volun-
tarism on behalf of people struggling with
neuromuscular
disease. The Corporate Citizen Award honbrs consistent support
of MGA. The Sosin Award was created in honor of :Jean Sosin and
her late husband, Hilbert. They pioneered the MGA more than 30
years ago following her diagnosis and her discOVery that inform
tion and counseling was lacking.
There are three types of reverse mortgages: The FHA Home Equity
Conversion Mortgage (HECM), the Fannie Mae Home Keeper (HK) and
the Cash Account TM (geared for higher value homes) developed by
Financial Freedom TM Senior Funding Corporation of Irvine; California.
Borrowers can choose to receive the reverse mortgage funds as a lump
sum, monthly income (for as long as they remain in the home), line of cred-
it, or any combination of the above. They make no monthly mortgage pay-
ments on a reverse-mortgage during the life of the loan. The loan becomes
repayable when the borrower sells the home or permanently moves out. In
addition, the repayment amount cannot exceed the value of the home and
can be used for any purpose.
An important consumer protection built into these loans is the require-
ment for independent third party counseling prior to application. This
counseling session serves to provide an objective review of the program for
the senior and their advisors to help them decide if it is the correct option.
Reverse mortgages, although distinctly different from traditional mort-
gages,still are mortgages and have the same basic cost structure for closing
costs. These fees would include items such as appraisal, title insurance, doc-
ument fees and other typical closing costs. One difference is that the clos-
ing costs of a reverse mortgage are generally funded in the loan, so the sen-
ior borrower has no out- of- pocket expense. Qualification for this loan is
simple, as there is no income qualification and minimal credit review.
So, if you think that a reverse mortgage might be a good option for you
or your parents, a great resource is the National Reverse Mortgage Lenders
Association (www.reversemortgage.org), a national non profit trade associa-
tion for financial services involved in reverse mortgages in the U.S. and
Canada. NRMLA promotes awareness of reverse mortgages, keeps mem-
bers informed of legislative and other developments, and represents the
industry in Washington, D.C.
For an illustration of how much benefit you might qualify for, visit the
Financial Freedom TM site at www.financialfreedom.com ., or call Ozzie
Jacobson at Premier Mortgage Funding for a personal consultation.
Ozzie Jacobson is the manager. of the Premier Mortgage Funding office at
25900 Greenfield, Suite #413, Oak Park, Michigan. Tel 248-968-3499.
A Advertisement
PREMIER
MORTGAGE FUNDING, INC.
Award-Winning Evening
Matthew Miller, event co-chair, and his wife, Stephanie, of
Bloomfield Hills enjoy the Anti-Defamation League's "Black and
Jewish: An Evening with Rain Pryor" at Knollwood Country Club
in West Bloomfield on Nov. 8. This year's event surpassed its
fund-raising goals and exceeded attendance of past years.
Following a strolling dinner, Pryor, daughter of comedian Richard
Pryor, performed her stage show, complete with music and anec-
dotes that play to her Jewish and African American roots.
New Consul In Town
Newly appointed Israel Consul General to the Midwest Barukh
Binah gives an update on Israel to 16 local news organizations on
Nov. 29 in Detroit. Speaking of the upcoming elections, the peace
process, the disengagement and the sharp decline in terrorist acts,
he assured everyone that it was safe to visit Israel again.
"I intend to try and attempt to expose Israel to the public opin-
ion of this country, this region, this state and this city," said Binah,
who is based in Chicago.
— Harry Kirsbaum, staff writer'
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December 1 2005