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Reverse Mortgages: Determine if it is a Good Choice

Homeowners over the age of 62 living in Western North Carolina now have increased access to reverse mortgage counseling.   OnTrack WNC recognizes the growing needs of seniors and has responded by expanding reverse mortgage counseling in five new locations, Bryson City, Murphy, Spruce Pine, Burnsville, and Boone in addition to OnTrack WNC’s eight current locations.

 “The economic downturn has impacted seniors living on Social Security, retirement investments and pensions. Accessing the equity in their homes can sometimes be the only way older adults can stabilize their incomes and meet basic needs,” comments Celeste Collins, OnTrack WNC Executive Director.  “In 2008 OnTrack WNC experienced a 52% increase over 2007 in reverse mortgage counseling sessions. We expect a similar, or possibly greater, increase in 2009 depending on what happens with the economy.”

What is a Reverse Mortgage?  After years of paying down the principal balance in a traditional home mortgage, qualifying seniors can generate income from the accumulated equity with a reverse mortgage.  The American Association of Retired Persons (AARP) describes a reverse mortgage as: “A loan against your home that you do not have to pay back for as long as you live there.  With a reverse mortgage, you can turn the value of your home into cash without having to move or repay the loan each month.”  (For more information go to www.aarp.org.) 

While reverse mortgage lenders provide loans, interested consumers must receive reverse mortgage counseling from a certified reverse mortgage counselor (who is unaffiliated with the lender) and must receive a certificate stating they have received the counseling to move forward with the reverse mortgage loan.  OnTrack WNC charges a $125.00 fee for reverse mortgage counseling to offset the cost to the agency to provide the service.

“In our counseling with seniors, we have seen a tremendous increase in the need for foreclosure prevention, bankruptcy, and crisis budget counseling.  Seniors are one of the most financially vulnerable groups in our community and are often more affected than others by these tough economic times,” comments Tom Luzon, OnTrack WNC Director of Counseling Services.  “For many of our clients, age 62 or older, reverse mortgages can be a valuable tool to keep their homes and avoid financial crisis,” he continued.

OnTrack WNC recognized the growing need for reverse mortgage counseling and responded by hiring a full-time reverse mortgage specialist, Tom Schunk, to spearhead the expansion of reverse mortgage counseling services in Western NC.  OnTrack WNC’s reverse mortgage specialist will also offer quarterly financial literacy workshops focusing on topics of interest to older adults. These workshops will be held at community locations throughout the region.

Full Listing of OnTrack WNC Reverse Mortgage Counseling Locations
Asheville
Boone
Brevard
Bryson City
Burnsville
Cherokee
Hendersonville
Hendersonville – El Centro
Franklin
Marion
Murphy
Spruce Pine
Waynesville

To make an appointment with our reverse mortgage counselor or to request a reverse mortgage education workshop, call OnTrack WNC at 828-255-5166 or 1-800-737-5485.

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