Reverse Mortgage Teleconference Held In Columbia

Columbia, SC -– The South Carolina Department of Consumer Affairs is using the Internet to educate the public.

On Tuesday, the department hosted an online teleconference, or Webinar, aimed at addressing the pros and cons of the reverse mortgage.

The teleconference allows consumers to listen to an oral presentation over the phone, follow along with a written presentation online, and email questions.

The Department of Consumer Affairs spokeswoman Maria Audas says the lagging economy necessitated the teleconference.

“The housing crisis, unfortunately, sent a lot of people into foreclosure. And those that it didn’t send into foreclosure, it made day-to-day living and payments a lot more difficult. So for a lot of seniors now, the option of a reverse mortgage is very attractive, because it’s gonna give them additional money from their equity to pay living expenses or maybe medical bills that have come up. And we’re seeing a lot more (interest in reverse mortgages), basically just because of the economy being what it is,” said Audas.

“This is just one of the ways that we can reach the most consumers and also professionals in the industry, as well, with the greatest convenience for all parties involved. This is open to the public and it allows everyone to have to have access very conveniently, right at their home or office.”

Audas says there are many factors that must be considered before applying for a reverse mortgage.

“It is another mortgage and so the same caution and responsibility that you would have with your very first mortgage, you need to have with reverse mortgages. There are fees and clauses and things that you need to be aware of before you go ahead and sign up for it.”

However, the reverse mortgage isn’t for everyone.

“If you do have that unexpected medical bill or you just need a little extra cash for you basic living expenses, it can be very helpful. However, a lot of people go ahead and take the money upfront and then don’t realize the consequences on the backend, that you are paying this loan back with interest and that you now have a home that has absolutely no equity. So whether that’s a problem for the current homeowner or the homeowner’s relatives in the future, it can be a problem,” said Audas.

People interested in the reverse mortgage have also become the target of scams.

Audas says people should always be cautious when choosing a lender.

“The number one tip there is make sure your are seeking out that reverse mortgage. So that you’re going to a HUD approved housing counselor or federally insured program that you know is reputable. As opposed to letting them come to you,” said Audas.

“If somebody comes to you and offers you that reverse mortgage deal, go ahead and be suspicious. You wanna do the shopping. Not the other way around.”

This is the third teleconference hosted by Consumer Affairs and there are more planned for the future.

Upcoming topics include identity theft and online purchases.