CCCS Of Maryland And Delaware Can Help You Decide If A Reverse Mortgage Is The Best Strategy

Online, August 15, 2013 (Newswire.com) - For a limited time, local nonprofit Consumer Credit Counseling Service of MD and DE (CCCS) will be providing free reverse mortgage counseling. A reverse mortgage allows you to borrow money against your home while you remain living there, without making payments on the loan. Ever since the economy slipped, this type of home loan has enjoyed increased popularity with older adults. According to National Reverse Mortgage Lenders Association figures, more than half a million households have obtained reverse mortgages in the past seven years. But reverse mortgages are very complicated and don't fit every situation. That's why consumers are required to receive HUD-approved housing counseling before they apply for one through FHA's loan program. CCCS's reverse mortgage counseling program helps clients gain the information they need to make better informed decisions.

CCCS Housing Program Manager Tom Simonton notes, "When it comes to reverse mortgages, the playing field has recently shifted some. Most large banks no longer offer this type of financing, and the void has been filled by a new group of lenders. Some are reputable -- while others may not have your best interests at heart." Predatory lenders are likely to refer loan applicants to organizations that offer brief, sometimes slapdash counseling sessions. He adds, "Clients may walk away from these sessions with the necessary certificate, but with very little understanding of how reverse mortgages work and how the decisions they make now will affect them for years to come."

CCCS Reverse Mortgage Counselor Carmen Jones-Burke agrees, "Clients who strictly focus on getting a certificate may end up in trouble given the host of reverse mortgage options available and the future issues that may arise. Before they even meet with a counselor, they need to take the time to review relevant information and educate themselves, so they have a basic knowledge. That way, when they come to the counseling session, they can ask questions and later make a sound decision."

In the past couple years, both Simonton and Jones-Burke have noticed a disturbing trend toward online reverse mortgage counseling. Simonton notes, "Online sessions generally don't allow clients to interact directly with a counselor or ask questions. As a result, these clients may leave the session without a personalized understanding of how a reverse mortgage will play out in their specific situation."

Simonton and Jones-Burke also have noticed that reverse mortgage counseling sessions vary widely based on the amount of time they involve and the information they provide. According to Jones-Burke, "Counseling sessions that simply run a half hour to an hour can't possibly supply all the information people need." Simonton agrees, "A truly well-planned counseling session is likely to run at least two hours in length. This may seem like a lot of time, but it's nothing compared with the amount of time, worry, and expense clients ultimately invest if they make a poor decision."

This past year, CCCS of MD & DE provided HUD-approved housing counseling to nearly 2,000 clients. Thanks to a recent federal funding initiative, the agency is now offering free reverse mortgage counseling. This service normally runs $125.00 per session. Simonton says the agency will continue this campaign until grant monies run out. "This is an excellent opportunity for local residents who want to learn if a reverse mortgage is right for them. But now's the time to act. Before long, this type of funding may dry up."

When clients first approach CCCS of MD & DE for reverse mortgage counseling, they are given a checklist of materials to gather and a packet of resources to review. Counseling sessions focus on clients' current financial situations, options they may have other than a reverse mortgage, program qualifications, how reverse mortgages work, factors that determine loan amounts, the pros and cons of the available reverse mortgage options, and responsibilities and issues to consider. Financial numbers offered during counseling are strictly given in illustration. Only lenders can provide clients with the actual loan amounts, costs, and fees.

Jones-Burke concludes, "When clients come to me, I encourage them to look at the big picture. It's not only important to look at where you stand now, but how the mortgage may affect your life as you get older and your needs change. My goal is for clients to leave the session armed with enough knowledge and awareness to make the best possible choice."

Please visit www.cccs-inc.org to learn more about CCCS's reverse mortgage counseling efforts or to view its free "Understanding Reverse Mortgage" online course. This course, which is located in the Education section of the agency's site, is self-paced and interactive. To schedule a free CCCS reverse mortgage counseling session, call toll-free 1-866-731-8486 today.

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Consumer Credit Counseling Service of MD & DE, Inc. (CCCS) is an accredited nonprofit agency that has served the local community since 1966. CCCS is dedicated to helping individuals and families resolve their financial problems. We promote the wise use of credit through education and confidential budget, money management counseling, and housing counseling. Like us on Facebook. MD State License #14-01 / DE State License #07-01.