Help is on the way for seniors with Reverse Mortgages, who it seems will benefit from changes in the recent Housing and Economic Recovery Act of 2008.
What is a Reverse Mortgage
A reverse mortgage works in the same way as an Equity Release mortgage but in this case we are talking about financial options offered to senior citizens in the USA. Reverse mortgages are offered to people who own their homes outright, or have very small mortgages that can be cleared with the proceeds from a Reverse mortgage.
The difference between a reverse mortgage and a regular mortgage is that no payments are due on the load by the home owner. They are entitled to receive the loan either as a lump sum or as a fixed payment until they die or sell the property, at which time the loan becomes repayable in full.
What Help For Reverse Mortgages
The new changes are set to reduce the incidence of fraud from would be lenders, and is said also to cap fees that can be charged on this type of financial product. The Housing and Economic Recovery Act of 2008, is a set of measures proposed by the US government that is intended to provide some relief and assistance to home owners and thus stem the decline in the US housing market.