Confused On Reverse Mortgage

Expert, localized Los Angeles answers provided by Heather Roy

Confused On Reverse Mortgage
	Hi Edith Lank. We are both retired and we just got a reverse mortgage, to pay off our small old mortgage and do some repairs. We still own our house until we are both gone and then the kids pay off what we owe and the rest is theirs. This helps as we are on a limited budget and now we don’t have to make a house payment. Our house was appraised for $156,000. Now we started getting papers in the mail about protection and insurance for a $234,000 mortgage. Where did they get that amount? And how come after the reverse mortgage was final the letters started coming? They want us to pay insurance on our mortgage payments but we don’t have any mortgage payments. I hope you can give me some answers.

	It’s too bad you’re getting this confusing mail. I haven’t seen it, but my guess is that some company is just trying to sell you something you don’t need. They probably got your name and address from the public records where your reverse mortgage was recorded. Perhaps they send it to everyone who just took out a loan, without paying attention to what kind of mortgage is involved. I’d throw the letters in the waste basket if I were you. Your reverse mortgage sounds just fine, and I am sure you’ll do well with it.
	Edith Originally published on August 14, 2005

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